The chief market analyst at KCM Trade Tim Uterer noted that if Federal Reserve Chairman Jerome Powell leaves the possibility of interest rate cuts in the coming months, this may put pressure on the income of state obligations and support gold. He also pointed out that the level at $2,800 looks like a realistic short-term target for gold. Gold without coupon obligations is usually considered a preferred investment asset in conditions of low interest rates.
According to the data published on Monday, the net imports of gold from China through Hong Kong fell by 84% in December compared to the previous month, hitting the lowest level since April 2022. Silver dropped by 0.4% to $30.07 per ounce, palladium decreased by 0.4% to $957, while platinum fell by 0.4% to $943.35.
Analysts revised their price forecasts for platinum and palladium for 2025, as the prospects for demand are significantly not improving, although average prices for both metals are expected to see little growth in 2026, as indicated by a Reuters poll. At the same time, the Russian company "Norilsk Nickel," the largest palladium producer in the world, announced that it produced 2.762 million ounces of palladium in 2024, which is 3% higher than the previous year's figures.
Futures for gold added 0.2% to $2,743.10. It is expected that members of the Federal Open Market Committee will leave interest rates unchanged in the near term. Nevertheless, US President Donald Trump may complicate the task by stating last week that he wants the central bank to lower lending rates.
If the Federal Reserve maintains interest rates at the current level, it will be the first pause in the cycle of rate cuts that started in September of last year. Gold is holding positions at the level on Tuesday, as investors are accumulating at the meeting of the Federal Reserve System of the USA, to find out if the policy of US President Donald Trump influences the central bank's decisions. The price of gold has practically not changed, at $2,738.90 per ounce. Prices for precious metals fell more than 1% on Monday after the unathorized Chinese model of artificial intelligence triggered a sell-off in the market.
