Gold prices rise slightly – Focus on Fed interest rate decision and geopolitical tensions

Gold prices saw a slight increase on Monday as investors eagerly await a possible interest rate cut from the US Federal Reserve this week. The central bank's wording regarding further rate cuts next year is particularly in focus in the markets. At the current moment, the spot price for gold rose by 0.1 percent to $2,650.86 per ounce. At the same time, US gold futures fell by 0.2 percent to $2,669.00. An impending rate cut of 25 basis points is largely priced in, but the markets are watching to see if the Fed might signal stable rates in the near future. This possibility arises from the current economic situation with inflation above the target level and a certain economic resilience, despite political uncertainties. In a market commentary from Citi, it is noted that demand for gold and silver is likely to remain strong, as a hedge against potential stock market losses, until a point when economic growth in the US and globally reaches a stable foundation. Citi anticipates that gold and silver prices could peak by the end of 2025. On the geopolitical stage, at least 53 Palestinians were killed during Israeli operations in the Gaza Strip. The Israeli military report notes successful operations against militants there. In uncertain times and with low interest rates, gold remains an attractive investment. In other precious metal markets, the spot price for silver fell by 0.2 percent to $30.50 per ounce, while platinum declined by 0.6 percent to $918.90. The price for palladium remained stable at $953.10.