Gold Steadies as Traders Look to Final Fed Meeting of the Year

(Bloomberg) -- Gold was steady as traders remained cautious ahead of interest-rate decisions by major central banks, including the Federal Reserve.

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Bullion traded near $2,650 an ounce, after notching a modest gain in the previous session as investors parsed mixed US data. Activity at US service providers is expanding at the fastest pace since October 2021, while a measure of New York state factory activity retreated by the most since last May.

The Fed makes it final rate decision of the year on Wednesday, which will be followed by policy announcements in Japan and the UK this week. Swaps markets are almost fully pricing in a quarter-point Fed cut, and traders will focus on policymakers’ language for clues on the 2025 outlook. Lower rates are typically positive for gold, which doesn’t pay interest.

The precious metal has risen by around 29% this year, putting it on track for its biggest annual gain since 2010. Its strength has been supported by easing in the US, safe-haven demand and sustained buying by the world’s central banks.

Spot gold was little changed at $2,651.93 an ounce at 7:57 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and palladium slipped, while platinum was little changed.

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