The upcoming US Federal Reserve meeting on December 18 will be crucial, as any interest rate cuts by the central bank will have a significant impact on the commodity market.
Investors are likely to closely monitor upcoming economic data, especially inflation numbers, for more clues about the direction of the Fed’s monetary policy.
A slowdown in the US labor market could lead to further interest rate cuts by the Fed after December and lower interest rates are likely to support gold prices, as gold does not earn interest, while putting pressure on the US dollar.
