Ammon News - Gold prices inched higher on Monday as investors anticipated a potential interest rate cut by the Federal Reserve this week, with focus on the central bank's language on rate cuts for next year.

Spot gold was up 0.1% to $2,650.86 per ounce as of 0532 GMT.
Meanwhile, U.S. gold futures slipped 0.2% to $2,669.00.

"A 25 basis point rate cut this week has been fully priced by markets, so the focus will be on whether this will be a 'hawkish cut', where U.S. policymakers may set the stage for a potential rate hold into January, given above-target inflation, some economic resilience and uncertainties over Trump's policies ahead," IG market strategist Yeap Jun Rong said.

Investors view it as a near-given that the Fed will cut rates by a quarter point at its Dec. 17-18 meeting. However, markets only priced in an 18% chance of a reduction in January, according to CME's FedWatch tool.

U.S. stocks closed out the week little changed on Friday, ahead of a Federal Reserve policy meeting next week.

Spot silver slipped 0.2% to $30.50 per ounce, platinum shed 0.6% to $918.90, while palladium was steady at $953.10.

Reuters