The post Gold price stays firm on Monday as market awaits FOMC meeting appeared on BitcoinEthereumNews.com.

Gold prices increase despite a slight rise in the US Dollar following mixed PMI data. Investors await the Fed’s interest rate decision and economic projections, expecting a 25 bps cut on Wednesday. The market speculates on the Fed’s future monetary policy amid potential inflationary pressure from Trump policies. Gold prices edge slightly higher during the North American session at the beginning of the week, up by 0.28%, as investors await the Federal Open Market Committee (FOMC) decision. At the time of writing, the XAU/USD trades at $2,643, above its opening price but off the highs of the day. The US economic docket remains light with the release of S&P Global Flash PMIs for December, which came mixed. Business activity in the manufacturing sector weakened after improving last month, while the services sector printed its highest reading in 2024. The data lifted the Greenback, which according to the US Dollar Index (DXY) rose 0.07% to 107.01. Meanwhile, Bullion dipped from daily highs of $2,664. The Federal Reserve (Fed) will meet for the last time this year on December 17 and 18. Estimates suggest the Fed will cut interest rates by 25 basis points, but traders are eyeing the release of the Summary of Economic Projections (SEP) to grasp the path of interest rates in 2025. Lower interest rates are usually a tailwind for the non-yielding metal. However, there is growing speculation that the Fed might adopt a gradual stance as the upcoming Trump administration hints at inflation-prone fiscal policies. Gold prices tend to rise in lower rate environments and with higher geopolitical risk, which have both subsided of late. The US economic docket will feature the release of Retail Sales, Industrial Production, the FOMC policy decision, and the release of the core Personal Consumption Expenditures (PCE) Price Index. Daily digest market…

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Filed under: News - @ December 16, 2024 6:22 pm