Gold holds gains as divergent Fed remarks temper easing outlook

Holdings in gold-backed exchange-traded funds have risen every month this year except May, according to the World Gold Council.

Gold steadied after four days of gains, with conflicting remarks from US Federal Reserve officials prompting traders to curb bets on further monetary easing next year.

Bullion was trading at around $4,305 an ounce, having added more than 2% last week. Though the Fed delivered a third straight interest-rate cut on Wednesday, three policymakers voted against the move and opinion is divided about the extent of further easing in 2026. Two of the dissenters — Chicago Fed President Austan Goolsbee and Kansas City counterpart Jeff Schmid — issued statements Friday outlining the rationale for their votes.

Goolsbee said it would have been “more prudent” to have waited for further information before cutting rates again after a government shutdown delayed key economic reports. Schmid said inflation “remains too high.” The split in opinion makes it less certain that the US central bank will continue on its path to further monetary easing — a policy that has helped metals like gold and silver, which typically prosper in a low-rate environment as they don’t pay interest.

Gold has surged more than 60% this year and silver has more than doubled — with both metals on track for their best annual performances since 1979. The scorching rallies have been underpinned by elevated central-bank buying and a retreat by investors from sovereign bonds and currencies.

Holdings in gold-backed exchange-traded funds have risen every month this year except May, according to the World Gold Council. Meanwhile, silver has been bolstered in recent weeks by speculative bets on lingering supply tightness after a historic squeeze in October. The white metal hit a record of $64.6573 an ounce on Friday.

Gold edged up 0.1% to $4,305.21 an ounce as of 8:45 a.m. in Singapore. Silver added 0.1% to $62.03, after losing 2.5% on Friday. Platinum rose, while palladium fell. The Bloomberg Dollar Spot Index was little changed.