Gold prices were little changed during Asian trading on Tuesday, with investors adopting a cautious stance ahead of this week’s Federal Reserve meeting, where another interest rate cut is widely expected.
Although gold has shown some softness in early December, the metal remains supported by a four-month streak of strong gains driven by optimism over lower U.S. borrowing costs. Broader metals also traded mostly sideways, while silver continued to hover just below all-time highs after a powerful rally last week.
Spot gold dipped 0.1% to $4,186.18 per ounce, and February gold futures edged down to $4,215.40/oz at 00:04 ET (05:04 GMT).
Fed cut expected, but tone remains a question mark
Most market participants anticipate a 25-basis-point rate cut when the Fed concludes its two-day meeting on Wednesday.
Expectations firmed after last week’s data showed a slight cooling in the PCE price index, the Fed’s preferred inflation measure.
However, analysts at OCBC warned that the risk of a “hawkish hold” has grown, partly because the Fed is heading into the meeting without access to key economic figures for October and November.
Even so, the broader outlook for lower U.S. rates has supported gold in recent months, as declining yields make non-interest-bearing assets more attractive.
Other precious metals were mostly unchanged on Tuesday but remain elevated after recent strong performance. Spot platinum held at $1,651.81/oz, while silver continued to stand out as the sector’s top mover.
Silver remains near record highs
Spot silver traded around $58.1/oz, holding close to last week’s record peak of $59.3474/oz.
The metal—often viewed as a haven similar to gold—has surged amid heavy speculative interest tied to expectations of tightening supply in the years ahead. Its appeal has also been strengthened by the U.S. officially classifying silver as a critical mineral.
Silver has more than doubled in price this year, significantly outperforming gold, as elevated bullion prices prompted investors to add exposure to alternative safe-haven assets.