Gold firms on Fed rate-cut hopes

Gold prices advanced today, Jan. 2, after the yellow metal achieved its first annual gain in three years at the end of last week’s trading, climbing by 13%, as the prospect of an interest-rate cut in early 2024 from the Federal Reserve firmed.

Bullion for February delivery rose 0.52% to $2,082.50 per ounce at 11:39 am Makkah time, with spot prices also up 0.48% to $2,072.93 an ounce.

Silver futures for March delivery, likewise, ticked 0.68% higher to $24.25 per ounce, in tandem with a 0.19% hike in platinum prices to $993.74 an ounce.

“The short-term bullish trend in gold still remains intact above key support level of $2,017 per ounce,” said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA, told Reuters.

Investors’ focus now shifts to the minutes from the last Fed meeting due on Jan. 4 for more cues on rate cuts this year.

“There was a change of tone in the December FOMC meeting, so traders will be scrutinizing for much more clarity on this dovish tilt, especially on what the Fed officials are looking out for,” Wong further stated.