Gold Holds Near $4,200 as Markets Await Fed Rate Decision

Gold prices hovered around $4,200 per ounce on Monday, steadying after last week’s pullback, as investors awaited the Federal Reserve’s final policy meeting of the year. Markets are pricing in an 88% chance of a 25bps rate cut, which would lower the funds rate to 3.75%–4.0%, with expectations for two more cuts in 2026.

Mixed US employment data and inflation readings in line with forecasts have strengthened the case for additional monetary easing. Traders will closely monitor the Fed’s updated economic projections, alongside Tuesday’s JOLTS job openings—the final labor signal before the decision.

In global developments, China’s central bank expanded its gold holdings for the 13th straight month, lifting reserves to 74.12 million troy ounces, underscoring strong central-bank demand for the metal.