Investing.com– Gold prices fell on Friday, pressured amid expectations that the Federal Reserve’s December rate cut will be accompanied by a less dovish outlook.
fell 1.2% to $2,648.64 an ounce, while expiring in February were 1.6% lower at $2,666.00 an ounce.
Gold pressured by dollar strength this week as Fed meeting looms
Still, the yellow metal tapered some of its gains this week as the notched a two-week win streak ahead of next week’s Fed meeting.
While the central bank is widely expected to , markets have grown more uncertain over its long-term plans for rates, especially as data this week showed U.S. inflation remained sticky.
The Fed is expected to cut rates at a slower pace in 2025 after slashing rates by 75 bps so far in 2024. Expansionary and inflationary policies under incoming President Donald Trump are also expected to keep rates higher in the long term.
High rates pressure metal prices by increasing the opportunity cost of investing in non-yielding assets. While gold hit a series of record highs this year as the Fed began cutting rates, its pace of gains has slowed in recent months.
Beyond the Fed, interest rate decisions in Japan and England will also be in focus next week.
Other precious metals retreated on Friday after also losing ground in recent sessions. fell 1.4% to $927.80 an ounce, while fell 2% to $2,666.00 an ounce.
Copper prices fall as China CEWC underwhelms
Among industrial metals, copper prices fell on Friday, extending a pullback from Thursday after traders were largely unimpressed by signals on stimulus from a top economic conference in China.
Benchmark on the London Metal Exchange steadied at $9,060.00 a ton, while February fell 1.2% to $4.1952 a pound.
China’s Central Economic Work Conference- a top-level meeting of government officials- revealed scant details on the country’s plans to release more stimulus and support the economy.
Expectations for the CEWC had been high after China’s Politburo offered up its most dovish signals yet earlier this week. But the CEWC did not provide any more cues on the pledged measures.
(Ambar Warrick contributed to this story.)
