Gold Prices Stabilize Ahead of Federal Reserve Meeting

According to Trading Economics data, gold prices stabilized near 4,207 dollars per ounce during trading on Monday, following a decline last week. Traders are awaiting the last meeting of the year for the U.S. Federal Reserve, which is widely expected to include a rate cut.

U.S. employment data has shown mixed results, and core inflation matching expectations has supported the likelihood of further monetary easing. Current market pricing indicates an 88% chance of a 25 basis point rate cut to a range between 3.75% and 4.0%, with expectations for two additional cuts next year.

Apart from the interest rate decision, traders will closely monitor the Federal Reserve's updated economic forecasts for 2026 and beyond for signals related to growth, inflation, and the monetary policy trajectory.

Meanwhile, the JOLTS job openings report on Tuesday, which is the last labor market data before the Fed's announcement, will be closely watched by the markets.

In another development, the People's Bank of China raised its gold reserves for the thirteenth consecutive month, reaching approximately 74.12 million troy ounces.