Lower rates are typically a positive for gold, as it doesn’t pay interest.
Gold inched higher as traders weighed the outlook for monetary policy after the US Federal Reserve’s (US Fed) preferred measure of underlying inflation came in below expectations last week.
Bullion traded near US$2,632 ($3,568) an ounce in thin trading after closing 1.1% higher on Friday, following the print of the core US personal consumption expenditures price index for November. The reading was muted, a step in the right direction for policymakers looking to reduce interest rates further in 2025.
