Gold inches down as buying picks up, US dollar momentum cools

Gold bars 

Gold prices saw a modest drop today, Dec. 23, as the US dollar gained ground after the Federal Reserve policymakers dampened their expectations for the pace of monetary easing in 2025.

February gold futures plunged by 0.11%, or $3, to $2,642.10 an ounce at 09:39 am Makkah time, while spot prices gained 0.38%, or $9.87, to stand at $2,630.64 per ounce

Elsewhere, March silver futures climbed by 0.79% to $30.19 an ounce, with platinum spot prices also up by 0.89% to $936.05 per ounce.

Spot gold rebounded on the back of increased buying by investors to cover their positions after the yellow metal suffered losses as a result of US policymakers lowering their expectations for the pace of monetary easing next year.

In addition, inflationary pressures in the US economy have eased, as evidenced by the latest reading of the personal consumption expenditures price index – the Fed’s preferred inflation gauge – which was released last Friday.

Moreover, the US dollar index, which gauges the greenback's strength against a basket of six currencies, lost some momentum at the onset of this week, rising 0.15% to 107.78 points, after it surpassed 108 points last Thursday.