Gold Holds Firm Above $2,050, Poised for 1.5% Weekly Gain

Published on Dec 15, 2023 13:49

Gold futures remain steady around $2050 per ounce, set to conclude the week with a 1.5% increase. Weakening dollar and Treasury yields followed the US Federal Reserve`s decision to maintain interest rates, signaling potential rate reductions in 2024 amid an unexpectedly swift drop in inflation. With Fed Chair Jerome Powell hinting at discussions on cutting borrowing costs, markets now indicate a 75% chance of rate cuts in March. Despite strong US retail sales and a decline in jobless claims, expectations for rate cuts persist. Meanwhile, the European Central Bank and the Bank of England, maintaining policy rates, commit to elevated levels to combat inflation. MCX February delivery gold futures are trading at Rs 62,468 per 10 grams, with silver futures holding above Rs 75,000 per kg after reaching a high of Rs 75,319 in the previous session.