FX.co ★ Gold Steady Ahead of FOMC Decision

Gold prices remained stable at approximately $4,210 per ounce on Wednesday as trading activity stayed within a narrow range. Market participants awaited an anticipated interest-rate reduction from the Federal Reserve later in the day, while seeking further clarity on the policy trajectory through 2026. Most economists predict a cautious rate cut, with Federal Reserve Chair Jerome Powell expected to express restraint regarding additional easing due to ongoing inflationary pressures. Recent data revealed continued strength in the US labor market, highlighted by job openings consistently exceeding expectations and ADP data indicating a resurgence in private-sector hiring in late November. These factors present a more complex scenario for the Federal Reserve's policy decisions. Concurrently, central banks have maintained their status as net purchasers of gold, with China increasing its reserves for the 13th consecutive month to approximately 74.12 million troy ounces. Robust official demand, in conjunction with significant inflows into exchange-traded funds (ETFs) and physical gold purchases, has driven gold prices to rise about 60% so far this year.