Gold rises on Fed rate-cut prospects

Gold rose today, Dec. 27, amid stability in the US dollar and decline in Treasury yields, as investors forecast the Federal Reserve will end its monetary tightening cycle early next year.

Gold futures for February delivery rose 0.35% to $2,077 per ounce at 10:26 am Makkah time.

Spot prices were unchanged at $2,066, and silver futures for March delivery also stabilized at $24.41.

Meanwhile, platinum spot prices fell 0.15% to $982.22.

Gold is mainly supported by expectations of interest rate cut in the US next year, Reuters reported, citing Jigar Trivedi, a senior analyst at Reliance Securities.

Financial markets are pricing in a 71.3% likelihood that the US central bank will reduce the Fed funds target rate by 25 basis points as soon as March, according to CME's FedWatch tool.