Gold has posted slight gains in the Wednesday session. In North American trade, the spot price for one ounce of gold is $1245.29, up 0.19% on the day. In economic news, consumer inflation reports softened in November, but matched the estimates. CPI dipped to 0.0 percent and Core CPI fell to 0.2 percent. On Thursday, the U.S releases unemployment claims.
The markets have become used to the Federal Reserve’s “gradual rate hike” policy, but that is likely to change next year. Only a few months ago, there was talk that the Federal Reserve could hike rates up to four times in 2019. However, signs of a slowdown in the U.S. economy have drastically changed matters, as the Fed is expected to scale back its rate increases, with many analysts predicting just one rate hike next year. Three rate hikes so far this year are starting to cool the red-hot U.S. economy. This trend is apparent from lower GDP readings and a dismal nonfarm payrolls report for November. Still, the Fed is widely expected to raise rates at the policy meeting on December 19, with the CME pegging the likelihood of a rate hike at 80%. The steady diet of rate hikes has also helped support the U.S dollar against other major currencies and gold. Since the start of the year, gold prices have fallen 4.5 percent, even with the global trade war and other geopolitical hotspots which
