Gold prices dropped over 1% on Thursday (12th) after hitting a five-week high, as investors took profits ahead of next week’s U.S. Federal Reserve meeting. Spot gold fell to $2,684.15, and December futures dropped to $2,709.40.

Despite the pullback, analysts expect continued bullish momentum, with a 98% chance of a Fed rate cut in December. Inflationary pressures, such as rising producer prices and increased jobless claims, support this expectation. Meanwhile, the European Central Bank cut rates again, marking its fourth reduction this year.

Gold Prices Drop as Investors Lock in Profits Ahead of Fed Meeting

Dec 13 2024