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Gold prices were broadly stable in Asian trading on Tuesday, with traders adopting a cautious stance ahead of this week’s U.S. Federal Reserve meeting, where policymakers are widely expected to deliver another interest rate cut.
Although the yellow metal has shown mild weakness in early December, it remains on track for a fourth consecutive month of strong gains, supported by growing conviction that U.S. interest rates will continue to drift lower. Other precious metals also traded flat, while silver held near record territory after last week’s explosive rally.
Spot gold dipped 0.1% to $4,186.18 an ounce, and February gold futures edged down to $4,215.40/oz as of 00:04 ET (05:04 GMT).
Fed Rate Cut Largely Priced In—but Outlook Still Clouded
Markets overwhelmingly expect the Fed to cut rates by 25 basis points at the end of its two-day meeting on Wednesday. Bets firmed further after last week’s release of the core PCE index, the central bank’s preferred inflation gauge, which softened modestly in September.
However, analysts at OCBC warned that the likelihood of a “hawkish hold” has risen in recent weeks. With the Fed missing key economic data for both October and November due to reporting delays, policymakers may be reluctant to commit strongly to an extended easing cycle.
Nonetheless, expectations for lower rates have been a major tailwind for gold, as falling yields reduce the opportunity cost of holding non-interest-bearing assets.
Broader precious metals also traded quietly. Spot platinum hovered at $1,651.81/oz, while silver continued to stand out after a powerful multi-session surge.
Silver Holds Near Record Highs
Spot silver remained steady around $58.1/oz, just below last week’s record high of $59.3474/oz.
The metal has been driven by a speculative wave, fueled by expectations of tightening global supply and the U.S. government’s recent designation of silver as a critical mineral, boosting its strategic and investment appeal.
Silver has more than doubled in value this year, outperforming gold as elevated bullion prices encouraged traders to seek alternative safe-haven assets.
