Gold prices held steady in Asian trading on Tuesday as investors stayed cautious ahead of this week’s U.S. Federal Reserve meeting, where policymakers are widely expected to deliver another interest rate cut.
Although gold has shown some weakness in early December, the metal remains supported by four consecutive months of strong gains driven by optimism over lower U.S. interest rates. Broader precious metals were also mostly flat, while silver continued to hover near record highs following sharp gains last week.
Spot gold dipped 0.1% to $4,186.18 per ounce, while February gold futures edged down to $4,215.40 per ounce by 00:04 ET (05:04 GMT).
Fed Rate Cut Expected, but Outlook Remains Uncertain
Markets broadly anticipate a 25-basis-point rate cut when the Fed concludes its two-day meeting on Wednesday. Expectations strengthened after last week’s data showed the PCE price index — the Fed’s preferred inflation gauge — cooled slightly in September.
However, analysts at OCBC warned that the risk of a “hawkish hold” has increased in recent weeks. With no major economic reports available for October and November ahead of the meeting, policymakers may opt for a more cautious stance.
Despite the uncertainty, the overall shift toward lower interest rates has supported gold prices. Softer yields on U.S. government debt make non-yielding assets like gold more attractive to investors.
Other precious metals were stable on Tuesday but continued to reflect strong momentum from recent sessions. Spot platinum held at $1,651.81 per ounce, while silver remained the standout performer.
Silver Trades Near Record Highs
Spot silver stayed near $58.1 per ounce after soaring to a record $59.3474 per ounce last week. The white metal — often used as both a safe-haven asset and industrial commodity — has surged on expectations of tightening supply in the coming years.
Silver’s appeal was further boosted after the U.S. classified it as a critical mineral. As gold prices climbed this year, many traders shifted toward silver as a more affordable alternative for haven exposure.
Silver has more than doubled in value this year, far outpacing gold’s gains and becoming one of the strongest performers in the precious metals market.
