Gold held steady as market participants began to focus on the Fed's policy direction for next year, rather than just the near-certain interest rate cut. Bullion traded around $4,193 per ounce, after closing slightly lower in the previous session. Meanwhile, US Treasury yields rose on Monday, ahead of a series of auctions and the Federal Reserve's interest rate decision on Wednesday, which could shape market expectations through 2026.

In the money market, swap traders still expect a quarter-point interest rate cut by the Fed. However, they now tend to see only two additional cuts by the end of 2026, down from the three-point expectation that emerged nearly a week ago. Kevin Hassett, who is considered a strong candidate for the next Fed chairman, believes it would be unwise for the central bank to be too far ahead in formulating its interest rate plans for the next six months. It's important to remember that high interest rates are typically negative for precious metals like gold, as they don't provide interest.

At 7:24 a.m. Singapore time, gold prices were stable at around $4,192.69 per ounce. Silver, on the other hand, fell slightly by around 0.1% to $58.1045 per ounce. Meanwhile, the Bloomberg Dollar Spot Index strengthened by around 0.1% on Monday, indicating the dollar remains quite strong. Meanwhile, palladium and platinum prices remained stagnant without significant movement, indicating that the precious metals market as a whole is still awaiting clarity on the direction of the Fed's future interest rate policy. (az)

Source: Newsmaker.id