A cautious calm in gold markets ahead of the last interest rate meeting in 2024

Gold saw little significant movement in the first trading of this week ahead of the US Federal Reserve’s latest decision on interest rates this year with traders also evaluating monetary policy expectations for 2025, Mining Platform reported.

Rising gold prices

Spot gold rose only 0.1% to $2,651.67 per ounce, while gold futures in the United States fell 0.1% to $2,673.60 per ounce in New York.

What do analysts say?

Regarding this, analysts say that gold prices declined after falling by 2.6% during the previous two sessions against the backdrop of mixed US data, including the acceleration of inflation at the level of wholesale goods and unemployment claims that were higher than expected.
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Interest rate expectations within a year

The Federal Reserve is expected to cut interest rates by 25 basis points at its meeting on Wednesday and observers are counting on a total of three quarter-point cuts over the next 12 months.
Regarding this, Nitish Shah, a commodity strategist at Wisdom Tree, said: “The continued presence of geopolitical risks has also contributed to the strength of gold,” adding that China, which is a major player in the global gold market, has resumed purchasing operations.
Meanwhile, 10-year US Treasury yields fell 0.2% on Monday, providing further support to non-yielding bullion.

Bullish momentum for gold

Rona O’Connell, an analyst at Stone
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Strong demand for precious metals

Citibank expects strong demand for gold and silver until interest rates stabilize in the United States, and it predicts that the two metals will reach their peak in late 2025 or early 2026.
The precious metal rose by about 29% this year 2024, which puts it on track to achieve its largest annual gain since 2010.

Gold trading range

From a technical perspective, the gold price zone between $2,644-2,643 or the lowest level in a week recorded on Monday appears to protect against an immediate negative decline to the $2,625 area and the bottom area around $2,614 and the $2,600 level.
On the other hand, the $2,664-2,666 price support area or swing high may continue to act as an immediate strong barrier ahead of the $2,677 area.
Sustained momentum would allow the price of gold to regain the figure of $2,700 per ounce, and may then extend to an upward movement to the level of $2,726, which gold is likely to reach later, according to what the American FX Street platform reported.