AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

12/8/2025: Gold slides ahead of Fed meeting

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold slid 0.6% to close under $4,188 as Treasury yields rose to multi-month highs on expectations that the Fed will deliver a "hawkish cut" at its meeting this week. Silver shed 64 cents to finish at $57.78 an ounce.

The markets almost universally anticipate another rate cut of 25 basis points at the Fed's final meeting on monetary policy this year. Supporting the US labor market has emerged as a priority in recent commentary from Fed Chair Powell and other committee members, with inflation taking a back seat.

But the persistence of inflation above the Fed's 2%, even before tariffs have fully hit prices, has bond traders apprehensive about prospects of additional easing in 2026.

Benchmark 10-year Treasury yields rose to the highest level in three months on expectations that Powell's post-meeting statements will be hawkish, signalling a high bar for further easing. Higher yields pressure gold by increasing the opportunity cost for holding it instead of bonds for safety.

Tracking with yields, the dollar edged higher against major rivals, weighing on gold and other commodities by making them more expensive in other currencies.

Platinum and palladium added 0.3% and 0.8%, respectively.

At the New York spot close: gold slid $25.70 to $4,187.20; silver shed 64 cents to $57.78; platinum picked up $5.60 to $1,651.95; and palladium added $11.20, to $1,483.70 an ounce.