This Monday, gold prices reduced their previous losses due to a slight fall in the U.S. dollar. Investors are looking ahead to the Federal Reserve's first policy meeting of the year for clues on the future of interest rates. At 12:10 GMT, spot gold was down 0.1% at $2,766.59 an ounce, while U.S. gold futures were down 0.3% at $2,771.40 an ounce. The dollar fell 0.2%, making gold less expensive for holders of other currencies.
Analyst Han Tan of Exinity Group mentioned that risk aversion in global markets has helped gold erase early session losses. Historically, gold has been a reliable hedge against geopolitical uncertainty and inflation, and thrives in a low interest rate environment.
The Federal Reserve is expected to hold rates steady at its Jan. 28-29 meeting, while the European Central Bank could cut interest rates by another 25 basis points on Thursday. Spot silver fell 0.2% to $30.54 an ounce, palladium fell 1.8% to $970.69 an ounce and platinum fell 0.5% to $944.48 an ounce.
Anjana Anil, Reuters.
https://www.reuters.com/markets/commodities/gold-retreats-dollar-firms-fed-meeting-looms-2025-01-27/