Gold Prices Stabilize as Fed Decision Approaches
Gold prices stabilized during trading on Wednesday, December 10, amid a rise in the US dollar bolstered by strong US economic data, ahead of the Federal Reserve's announcement regarding interest rates, which the market expects to see a new cut.
Gold recorded a spot price of $4,210.29 per ounce, while February gold futures rose slightly by about 0.1% to reach $4,240.60 per ounce.
This stability was influenced by the dollar index rising to its highest level in about a week, supported by a strong US jobs report that boosted confidence in the labor market. Additionally, yields on 10-year US Treasury bonds rose to their highest level in two and a half months.
Data from the US Department of Labor showed that the number of job openings in October rose to 7.67 million, exceeding expectations of 7.15 million jobs.
In related news, White House economic advisor Kevin Hassett, during an event for the Wall Street Journal, indicated that there is "ample room" for further interest rate cuts, while cautioning that the path may change if inflation rises. Hassett is a prominent candidate to take over as Chairman of the Federal Reserve.
According to market estimates, the probability of a 25 basis point rate cut at the conclusion of the Federal Open Market Committee meeting today, Wednesday, stands at 88.6%. Assets that do not yield returns, such as gold, typically benefit from a low interest rate environment.
Regarding other precious metals, silver prices in spot trading rose by 0.5%, reaching a new record level of $61.02 per ounce, after surpassing the $60 threshold in the previous Tuesday session.
