Monday, December 22, 2025 - Gold prices steadied on Tuesday after reaching a record high, underpinned by expectations of more US rate cuts and a weaker dollar, as investors awaited Federal Reserve Chair Jerome Powell's speech for further policy cues.
Spot gold held its ground at $3,744.68 per ounce as of 0412 GMT, after hitting a record high of $3,759.02 earlier in the session, Reuters said.
US gold futures for December delivery rose 0.1% to $3,779.40.
The US dollar index extended its losses from the previous
session, making greenback-priced gold cheaper for overseas buyers.
"I think it's predominantly a factor of monetary policy
expectations, potentially lower interest rates, and upside risks to
inflation," said Capital.com analyst Kyle Rodda.
"The short-term trend is still bullish intact, but on an
intraday basis, we do expect a short-term pullback more due to technical
factors," OANDA senior market analyst Kelvin Wong said.
Investors are closely awaiting Powell's speech, due at 1635
GMT, for signals on the central bank's policy. The US Personal Consumption
Expenditures index, Fed's preferred inflation gauge, is due on Friday.
New Federal Reserve Governor Stephen Miran said on Monday
that the Fed is misreading how tight it has set monetary policy and will put
the job market at risk without aggressive rate cuts, a view countered in
remarks by three of his colleagues who feel the central bank needs to remain
cautious about inflation.
According to the CME FedWatch tool, investors see a 90%
probability of a 25-basis-point rate cut in October and a 75% chance of another
one in December.
"We see slowing economic growth, higher inflation, the
shifting geopolitical landscape and a weaker USD keeping gold’s investment
demand strong," ANZ said in a note.
Spot silver fell 0.5% to $43.84 per ounce, hovering near a
14-year high. Platinum was down 0.2% to $1,413.80 and palladium inched lower
0.5% to $1,173.18.
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