Gold Stabilizes Amid Hopes of U.S. Interest Rate Cuts

Gold prices stabilized above the $2,000 mark on Wednesday, supported by expectations that the Federal Reserve might lower interest rates next year, as investors await inflation data from the United States set to be released later this week. Gold prices in the spot market showed little change, registering $2039.89 per ounce by 05:20 GMT. U.S. gold futures rose by 0.1% to $2053.20. Last week, the Federal Reserve indicated that the tightening phase might be over and hinted that there could be rate cuts next year. Raphael Bostic, president of the Federal Reserve Bank of Atlanta, stated on Tuesday that there is no "urgent need" to cut interest rates, considering the strength of the economy. Analyst Matt Simpson from City Index noted that the Federal Reserve is "pulling back on rate cuts, and unless we see a weaker report on personal consumption expenditure inflation, there might be room for disappointment among those calling for a rate cut, which could limit the upside potential for gold." Investors are currently awaiting the core personal consumption expenditures index report for November, which is the Federal Reserve's preferred measure of core inflation, scheduled to be released on Friday. Regarding other precious metals, silver in the spot market increased by 0.3% to $24.11 per ounce, platinum rose by 0.3% to $957.41, and palladium climbed by 0.1% to $1225.21.