Gold price rises amid conflicting views on more US Fed rate cuts in 2025

Gold prices rose as much as 0.9% to trade near $3,967 an ounce after falling almost 5% over the previous four sessions. Spot gold rose 0.8% to $3,962.09 an ounce as of 9:08 am in Singapore. The Bloomberg Dollar Spot Index dipped 0.1%. Silver rose for a third day, climbing 0.8%, while platinum and palladium advanced.

On Wednesday, US Fed Chair Jerome Powell downplayed the likelihood of a December reduction after a widely expected quarter-point cut on Wednesday. Still, despite Powell’s unusually direct remarks, the vote marked the third straight meeting in which officials lodged dissents against the majority decision—a run not seen since 2019.

The divisions at the Fed add to challenges for investors seeking signals on the path ahead for monetary policy, with the US government shutdown that began in early October creating a vacuum of official data. Higher interest-rates tend to pose a headwind for non-yielding gold.
source:hindustantimes.com