GOLD held near nine-month highs on Monday (Jan 16), aided by expectations of slower interest rate hikes from the US Federal Reserve.

Spot gold was little changed at US$1,918.60 per ounce, as of 0014 GMT. Earlier, prices had hit US$1,922.25, its highest since April 2022.

US gold futures fell 0.1 per cent to US$1,920.10.

Market participants are mostly expecting a 25 basis points (bps) rate hike increase at the Fed’s next policy meeting.

Lower rates tend to be beneficial for gold as they decrease the opportunity cost of holding the non-yielding bullion.

US consumers are becoming more confident that price pressures will ease considerably over the next 12 months, with a survey on Friday showing their one-year inflation expectations falling in January to the lowest level since the spring of 2021.

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Premiums for physical gold rose sharply in China last week, buoyed by optimism around the country’s reopening before Lunar New Year festivities, while Indian traders offered steeper discounts as record-high local prices dented consumer sentiment.

Spot silver edged 0.1 per cent higher to US$24.28, platinum was flat at US$1,065.10 and palladium slipped 0.9 per cent to US$1,773.25. REUTERS