Gold Prices Hold Firm Above $2,000 Mark

Gold Prices Hold Firm Above $2,000 Mark

Gold prices edged up and held above the key $2,000 level on Wednesday, supported by prospects of interest rate cuts from the Federal Reserve next year, while investors awaited US inflation numbers due later this week.

Spot gold rose 0.1% to $2,042.10 per ounce, as of 0729 GMT. US gold futures gained 0.2% at $2,055.90, Reuters reported.

Last week, the Fed indicated its tightening phase was at an end and signaled that rate cuts are in the cards for 2024.

Atlanta Fed President Raphael Bostic on Tuesday said there is no current "urgency" for the central bank to reduce US interest rates given the strength of the economy.

"The Fed are pushing back on rate cuts, and unless we see a materially weaker PCE inflation report then there could be some room for disappointment from those calling for a March cut, and limit gold's upside potential," said Matt Simpson, a senior analyst at City Index.

Markets are pricing in about a 75% chance of a rate cut in March, according to CME FedWatch tool. Lower US interest rates pressure the dollar and bond yields, increasing the appeal of non-yielding bullion.

"Gold could certainly hit a new high in 2024. But the bigger question is if it