Gold prices in India remained steady on Wednesday, December 10, trading in a narrow range as market participants awaited a Federal Reserve interest-rate cut later in the day while seeking clearer guidance on the policy path through 2026.
The February futures contract on MCX opened higher at ₹1,30,339 per 10 grams, compared to the previous close of ₹1,30,107.
By 8:00 PM IST, MCX gold was trading ₹306, or 0.24% lower, at ₹1,29,760 per 10 grams. The spot gold price overseas also traded in a narrow range, declining 0.19% to $4,119 per ounce.
Fed likely to cut rates by 25 basis points
The Fed is widely expected to announce on Wednesday a rate cut, but investors expect policymakers to remain divided. Some policymakers have warned that price pressures could easily pick up again, while others have been more concerned about the labor market's health.
Most analysts anticipate a cautious approach, with Chair Jerome Powell expected to signal restraint on additional easing due to ongoing inflationary pressures.
Recent data highlighted strength in the US labor market, with job openings continuing a streak of stronger-than-expected results and ADP figures showing a rebound in private sector hiring in late November, adding nuance to the Fed’s decision-making.
Traders now see an 89.6% chance of a 25-basis-point rate cut this week, according to CME's FedWatch Tool.
White House economic adviser Kevin Hassett, who is a top contender as the next chair of the Fed, said on Monday that the central bank should continue to lower interest rates. That will raise questions about how the Fed will operate in the medium term.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
