Mumbai: Gold prices edged higher on Monday as the US dollar weakened and global traders waited for a key interest rate decision from the US Federal Reserve scheduled later this week. Spot gold traded around 4215 dollars per ounce, marking a steady rise as expectations of a rate cut grew stronger in financial markets.
Analysts said the weaker dollar made gold cheaper for buyers using other currencies, increasing demand and supporting the price. Other precious metals including silver, platinum and palladium also saw small but steady gains.
Global brokerage firms, including Nomura, have predicted that the Federal Reserve may cut interest rates by 25 basis points during its policy meeting on December 9 and 10. Market data also shows an increased probability of a rate cut, as recent US economic reports signaled slower consumer spending and weaker growth in some sectors.
In India, domestic gold prices remained close to 1 lakh 30 thousand rupees per 10 grams. A weaker rupee has added pressure to local prices, making imported gold costlier. Market experts said that if the Federal Reserve confirms a rate cut, prices may move even higher in the coming days.
Investors are now focused not only on the rate announcement but also on what the Federal Reserve communicates about future policy direction. Many traders believe that even a small cut could influence global markets, currency movements and the demand for safe haven assets such as gold.
Financial analysts added that gold prices may remain volatile until the decision is announced, as any unexpected policy move or statement from the Federal Reserve could change market direction quickly.
For now, traders and investors across global markets continue to watch the situation closely, waiting for clearer signals on inflation, economic growth and interest rate trends.