Gold Prices Near $4,345 per Ounce

SadaNews - Gold stabilized after four days of gains, amid mixed statements from officials at the U.S. Federal Reserve, which prompted traders to reduce their bets on further monetary easing in the coming year.

The precious metal was trading at around $4,345 per ounce, having added more than 2% last week. Although the Federal Reserve implemented its third consecutive interest rate cut on Wednesday, three policymakers voted against the decision, amid differing opinions on the extent of potential additional easing in 2026.

Two of the dissenting voices, Chicago Federal Reserve President Austan Goolsbee and Kansas City Fed President Jeff Schmid, issued statements on Friday explaining their voting justifications.

Division Within the Fed and Its Impact on Metals

Goolsbee stated that it would have been "more appropriate" to wait for additional information before cutting rates again, after a government shutdown delayed the release of key economic data. For his part, Schmid noted that inflation "remains excessively high."

This division of opinions mitigates expectations that the Fed will continue on its path towards further monetary easing, a policy that has supported metals like gold and silver, which typically thrive in low-interest-rate environments as they do not yield a return.

Gold Rises Over 60% This Year

Gold has surged more than 60% this year, while silver has more than doubled, with both metals on track for their best annual performance since 1979. These strong increases have been supported by rising central bank purchases and a declining interest in sovereign bonds and currencies.

Gold-backed exchange-traded fund holdings have increased in every month of this year except May, according to the "World Gold Council." In contrast, silver has seen support in recent weeks from speculative bets on continued supply shortages, following a historic decline in October. The white metal reached a record level of $64.65 per ounce on Friday.