Gold prices rose in the European market on Wednesday, extending gains for a second consecutive session, supported by a pause in the US dollar’s advance against a basket of major currencies and by a modest uptick in safe-haven buying of the metal.
However, the current rise remains limited as investors stay cautious ahead of the final Federal Reserve policy decision of the year. The central bank is widely expected to announce a third consecutive 25-basis-point rate cut, along with key updates on the projected path of interest rates through 2026.
Price Overview
• Gold prices today: Gold rose 0.3% to $4218.85 from an opening level of $4207.68, after hitting a low of $4201.12.
• At Tuesday’s settlement, gold gained 0.45% — its first increase in three sessions — with safe-haven inflows providing modest support.
US Dollar
The dollar index fell 0.2% on Wednesday, retreating from a one-week high and heading toward its first loss in three sessions, reflecting a pause in the US currency’s recent upward momentum.
Federal Reserve
The Federal Reserve concludes its final policy meeting of 2025 later today, with expectations pointing to a 25-basis-point cut in the federal funds rate — the third consecutive reduction this year.
The interest-rate decision, monetary-policy statement, and updated economic projections will be released at 19:00 GMT, followed by Chair Jerome Powell’s press conference at 19:30 GMT.
These updates are expected to offer stronger clarity on the direction of monetary policy and the likelihood of further rate cuts in 2026.
Kevin Hassett — the White House’s senior economic adviser and the leading candidate to succeed Powell — said Tuesday that there is “plenty of room” for deeper rate cuts, although persistently high inflation may alter the calculus.
Gold Outlook
• Kelvin Wong, market analyst for Asia-Pacific at OANDA, said investors are significantly repositioning ahead of the Fed’s policy decision.
• At FX News Today, our view is as follows: If the Fed’s updates and messaging turn out more aggressive than markets currently expect, the probability of additional rate cuts in 2026 may decline, placing stronger downward pressure on gold.
SPDR Fund
Holdings in the SPDR Gold Trust — the world’s largest gold-backed exchange-traded fund — fell by 1.14 metric tons on Tuesday, marking a third consecutive daily decline. Total holdings now stand at 1,047.97 metric tons, the lowest since December 3.
