(Bloomberg) -- Gold was steady as traders weighed the outlook for monetary policy after the Federal Reserve’s preferred measure of underlying inflation came in below expectations last week.
Bullion traded near $2,620 an ounce in thin trading after closing 1.1% higher on Friday, following the print of the core personal consumption expenditures price index for November. The reading was muted, a step in the right direction for policymakers looking to reduce interest rates further in 2025.
Lower rates are typically a positive for gold, as it doesn’t pay interest.
Gold has climbed around 27% this year and hit record price levels, supported by US monetary easing, safe-haven demand, and buying by the world’s central banks. However, the rally eased after the election of Donald Trump, which boosted the dollar. A stronger greenback makes commodities priced in the currency more expensive for most buyers.
Spot gold was little changed at $2,620.19 an ounce at 9:12 a.m. in Singapore after falling 1% last week. The Bloomberg Dollar Spot Index was flat, following a 0.6% weekly gain. Platinum rose, while silver and palladium were steady.
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