Gold traded near multi-week highs through last week as expectations of a Fed rate cut continued to firm. (AI image)

Gold price prediction today: Gold prices are expected to be driven by US Federal Reserve’s policy decision and comments by the Fed Chair, says Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd. He shares his views and recommendations for gold investors:Gold traded near multi-week highs through last week as expectations of a Fed rate cut continued to firm, supported by dovish commentary from policymakers and a series of weak US data releases. Markets are now pricing an 85–90% probability of a 25 bps cut, reinforced by the unexpected 32,000 drop in November’s ADP private-sector jobs—the steepest hiring slowdown since 2023 and the third decline in four months. Softer Treasury yields and a mild geopolitical risk premium after inconclusive US-Russia discussions on the Ukraine conflict added further support, though some profit-booking emerged amidst the in-line with expected PCE inflation report and Fed Chair Jerome Powell’s remarks. Central bank buying and steady ETF inflows also aided sentiment, even as physical demand in India and China eased with buyers waiting for a correction.Silver, which rose 3.3% a few days ago, saw some early-week profit-taking but remains underpinned by tightening inventories in London and China and a structural deficit expected to persist into 2026. Strong industrial demand, sustained safe-haven flows, and highest weekly ETF inflows since July further reinforced bullish momentum. Overall, precious metals traded firm as markets increasingly priced in imminent Fed easing heading into the final policy meeting of the year. This week focus will be on the last Fed policy meeting, factory orders and few other important data points. However, the market will be cautious till the Fed meeting as along with interest rate change, Governor Powell’s speech and projections could trigger further action in bullion.Stance: Sideways to higherRange: 128,000-133,000(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)