Gold edges higher on US rate outlook; silver dips but stays near record high

Gold prices edged higher on Tuesday (Dec 16), supported by expectations of a US interest rate cut in January, as investors awaited key jobs data due later in the day, while silver hovered near record highs hit last week.

Spot gold was up 0.1 per cent at US$4,304.92 per ounce, as at 9.03 am. US gold futures were steady at US$4,333.20 an ounce.

Gold has gained more than 64 per cent this year, shattering multiple records and making it one of the best-performing assets of 2025.

The US dollar sagged to near a two-month low at the start of the Asian trading session on Tuesday.

The US Federal Reserve delivered a 25-basis-point rate cut last week in a divided vote but indicated a likely pause in further reductions amid persistent inflation and an uncertain labour outlook.

Investors are currently pricing in a 76 per cent chance of a 25-basis-point rate cut in January with some traders expecting two cuts as per CME’s FedWatch tool, with this week’s non-farm payrolls report expected to provide further clues on the Fed’s policy path.

The US Bureau of Labor Statistics on Tuesday releases its long-awaited combined employment reports for October and November, but a number of key details will be missing after the government shutdown prevented data collection, including October’s unemployment rate, resulting in the first-ever gap in that critical data series.

Meanwhile, Fed governor Stephen Miran said on Monday that current above-target inflation did not reflect underlying supply and demand dynamics that are generating price increases much closer to the central bank’s 2 per cent target, asserting that “prices are now once again stable.”

Non-yielding gold tends to benefit in a low-interest-rate environment.

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Spot silver fell 0.5 per cent to US$63.60 per ounce. It hit a record high of US$64.65 on Friday before closing sharply lower.

Silver has gained 121 per cent since the beginning of the year on tightening inventories, strong industrial demand and its inclusion on the US critical minerals list.

Spot platinum added 0.8 per cent to US$1,797.0, while palladium lost 0.3 per cent to US$1,561.94 per ounce. REUTERS

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