Gold prices were largely unchanged during Asian trading on Tuesday as investors exercised caution ahead of the Federal Reserve’s policy meeting later this week. Markets broadly expect the Fed to deliver a 25-basis-point rate cut. Spot gold eased slightly to around $4,186 per ounce, while February futures slipped to about $4,215. After four straight months of strong gains driven by easing expectations, gold has entered a consolidation phase.
Recent Personal Consumption Expenditures (PCE) inflation data supported the case for monetary easing. However, analysts cautioned that with limited fresh economic data from October and November, the Fed could adopt a more cautious — or even “hawkish” — tone, potentially capping short-term upside for bullion. Still, the broader downtrend in U.S. yields continues to underpin gold over the longer term.
Silver remains the standout performer among precious metals. After surging to a record above $59 last week, prices have since stabilized near $58. Supported by tightening supply expectations and rising investor interest, silver has roughly doubled this year, as traders seek alternatives to increasingly expensive gold as a safe-haven asset.