What was the LBMA Gold Price PM last week?

$4,243 per ounce, up 1.2% week-on-week.

How much has gold gained year-to-date?

Gold has surged 63% year-to-date.

What factors supported gold’s recent gains?

Declining FX opportunity costs, moderate ETF buying, and silver’s breakout.

Gold Prices Extend Strong Rally as Market Awaits Key Fed Decision

Gold | 2025-12-09 06:59:39

Investor attention now turns to this week’s U.S. Federal Reserve meeting, with futures pricing in an 88% probability of a 25-bps rate cut.

By Paul Ploumis

Gold Prices Extend Strong Rally as Market Awaits Key Fed Decision

Summary

Gold Rally Continues: LBMA Gold Price PM rose 1.2% week-on-week to $4,243/oz, up 63% year-to-date.
Market Drivers: Gains supported by declining FX opportunity costs, moderate ETF buying, and silver’s breakout; offset by rising bond yields.
Investor Focus: Attention on the upcoming U.S. Fed meeting and potential leadership changes, which could influence gold, yields, and the dollar.

SEATTLE (Scrap Monster): Gold continued its upward momentum last week, with the LBMA Gold Price PM rising 1.2% week-on-week to US$4,243/oz, extending its impressive 63% year-to-date gain. The metal drew support from declining FX opportunity costs, which added 0.7%, offsetting headwinds from rising bond yields and easing gold ETF inflows.

Global investors remained net buyers of gold ETFs, though at a slower pace, while bullish positioning in gold options also moderated. Analysts note that gold must break above US$4,245/oz to confirm a “triangle” continuation pattern and signal a resumption of its broader uptrend. If successful, prices could next target US$4,300/oz and potentially challenge the current high near US$4,382/oz.

LBMA Delegates Predict Gold Prices Could Soar to Nearly $5,000 Per Ounce within a Year

Investor attention now turns to this week’s U.S. Federal Reserve meeting, with futures pricing in an 88% probability of a 25-bps rate cut. While rate reductions typically support gold, markets caution that the Fed’s forward guidance may be more pivotal. Any hawkish tone could pressure the metal by lifting Treasury yields.

Uncertainty around Fed leadership—amid expectations that Chair Powell will step down—adds another variable, with a potentially more dovish successor likely to influence gold, yields, and the U.S. dollar.

Silver’s breakout to new highs may further reinforce gold’s upward trend, provided support at US$4,164/oz holds.