The price of gold is rising ahead of the U.S. Federal Reserve’s latest decision on interest rates that’s to be delivered on Jan. 31.
The spot price of gold is up 0.46% to $2,054.00 U.S. per ounce. The price is also getting support from a weaker U.S. dollar and lower Treasury yields ahead of the Fed’s rate decision.
The yield on the benchmark 10-year U.S. Treasury bond has dropped to a two-week low of 4.07%.
While economists and markets widely expect the U.S. central bank to hold interest rates at current levels on Jan. 31, expectations for a rate cut in March of this year are at 50%.
Lower interest rates decrease the opportunity cost of holding gold, and a weaker U.S. dollar makes gold a more attractive investment.
A recent poll conducted the Reuters news agency found that commodities traders expect record gold prices later this year as interest rates move lower.
The same survey found that traders have downgraded their price forecasts for platinum and palladium in 2024 as demand struggles to firm up.
The spot price of platinum declined 0.6% to $921.39 U.S. an ounce, while the spot price of palladium is down 0.5% at $977.96 U.S.
