Spot gold prices steady this Tuesday following the latest sentiment from the United States Federal Reserves. Experts say that 2020 will be a good year for the volatile commodity, adding that 2019 has been rough on traders.
Last Friday, the XAU USD pair fell sharply against the positive results from the US Nonfarm Payroll report. Since then, despite the effect quickly wearing off, the precious metal is struggling to gain traction in trading sessions.
Bulls are trying their best to regain the losses from Friday’s sharp drop. But the mixed sentiment in the market is preventing spot gold prices from gaining traction in trading sessions.
On Friday, the XAU USD nosedived from $1,475.90 to $1,460.42 in sessions. The main cause, of course, is the record-smashing performance of the US labor force and the unemployment rate’s contraction.
And as of the moment, spot gold prices are struggling to hold on as traders expect the US fed to hold on to current rates. Meaning, no easing in the last month of 2019 in line with the job data and reinforcing the greenback in trading.
The Philadelphia Gold/Silver, or XAU, barely inched down by 0.05% or 0.05 points this Thursday.
In contrast, the XAU USD barely edged up by 0.06% or 0.87 points in trading sessions. Spot gold prices are currently at $1,462.70 and have reached ranges between $1,460.00 and $1,462.84.
Effective Rate Cuts
The United States Federal Reserve is scheduled to deliver its last interest rate decision tomorrow, December 11. And with the latest developments in the country’s economic performance, the Fed is widely expected to retain its rates.
US policymakers will most likely to focus on the positive effects of the previous rate cuts and the outlook for 2020.
The Federal Reserve made it clear then that it aims to stand on its interest rates if “material” changes or improvement shows. It does not take an expert to see that the US jobs data will have a significant effect on the Fed’s decision.
Perhaps that is what is restricting spot gold prices from making a recovery in sessions.
The previous rate cuts from the Fed have steadily boosted the economy, mitigating the effects of the global economic slowdown.
Other Metals in Trading
Elsewhere in the market, other precious metals in trading are doing well this Tuesday. Silver, platinum, and palladium futures are steadily inching their way up in trading sessions.
Despite spot gold prices struggling to recover, its peers in the higher tier metals are regaining their momentum.
Silver futures rose 0.25% or 0.041 points this Tuesday’s trading. The lustrous white metal currently trades around $16.683, advancing from its last close of $16.642.
While the US palladium contract jumped up by 0.34% or 6.35 points today. A troy ounce of this metal now costs $1,860.95.
And lastly, among all the precious metals in trading, platinum has the biggest gains. The US platinum contract surged 0.60% or 5.35 points this Tuesday, trading for $902.05 in sessions.
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But based on their performance in the span of one month, palladium futures had a better run amongst all. The contract inched its way from $1,653.80 on November 12, gaining over $200 since then.