Wednesday 31 December 2025 – 02:57 PM
Gold prices fell in the local markets and the global stock market during trading today, Wednesday, affected by the decline in market bets on lowering interest rates during the Federal Reserve meeting next January, following the release of the minutes of the Federal Open Market Committee meeting for December, according to the “iSagha” platform report.
iGold: Gold is close to recording its largest annual gains in more than 45 years
Saeed Embabi, Executive Director of the platform, said that gold prices in the local market fell by about 55 pounds per gram, with a gram of 21 karat gold recording a level of 5,830 pounds, while international prices fell by about $30, with an ounce trading near $4,310.
He added that the price of a gram of 24 karat gold was about 6,663 pounds, the price of a gram of 18 karat gold was about 4,997 pounds, while the price of a gold pound was about 46,640 pounds.
Gold recorded a slight decline in the last trading sessions of 2025, as it stabilized near $4,310 per ounce during European trading, in light of selling pressure affecting precious metals following the issuance of the minutes of the Federal Reserve meeting, which revealed a clear division within the Open Market Committee regarding the future path of monetary policy.
Some Federal Reserve officials indicated that keeping interest rates unchanged for a longer period may be the most appropriate option, especially after three interest cuts were implemented during the current year, while others believed that further cuts may be justified if inflation rates continue to decline.
Despite this decline, gold prices have jumped by about 64% since the beginning of the year, with expectations that the yellow metal will record its strongest annual gains since 1979, supported by increasing possibilities of lowering US interest rates again during 2026.
Gold is heading to achieve its best annual performance in 2025, after its rise accelerated in late April, following US President Donald Trump’s announcement of the imposition of global customs tariffs, which boosted demand for gold, in addition to intense purchases from central banks and a rise in the holdings of exchange-traded funds backed by gold.
Geopolitical tensions also boosted demand for gold as a safe haven, in light of declining hopes for reaching a peace agreement between Russia and Ukraine, after reports of alleged attacks targeting the residence of Russian President Vladimir Putin.
Moscow announced the tightening of its negotiating position, accusing Kiev of being behind the attack, accusations that Ukraine denied and described as attempts to disrupt the peace process.
In the Middle East, Saudi air strikes in Yemen, along with Iran’s announcement of its entry into an “all-out war” with the United States, Europe, and Israel, contributed to escalating fears of expanding tensions, at a time when Trump warned of carrying out additional strikes if Iran resumed developing its nuclear program.
Also, the continued tension between Israel and Iran, along with the escalating disputes between the United States and Venezuela, supports the demand for safe assets, as investors seek instruments that maintain their value in periods of uncertainty, most notably gold.
On the other hand, the increase in margin requirements on gold and silver futures contracts, approved by the Chicago Mercantile Exchange (CME) group, may limit the gains of the yellow metal, as this step may prompt widespread profit-taking and restructuring of investment portfolios, and any tangible progress in the Ukrainian peace negotiations may constitute an additional pressure factor on prices.
Markets are awaiting the release of data on initial unemployment claims in the United States later today, amid expectations that they will rise to about 220,000 applications for the week ending December 27, compared to 214,000 applications in the previous week, with expectations of a decline in trading volumes as the New Year holiday approaches.
The Federal Reserve Board decided to reduce the interest rate by 25 basis points, reaching a range of 3.50% – 3.75%, in a move that supporters attributed to increasing negative risks to the labor market and declining inflationary pressures.
Federal Reserve Governor Stephen Meiran voted against the decision, demanding a deeper rate cut, while Chicago Fed President Austin Goolsbee and Kansas City Fed President Jeff Schmid opposed the decision, preferring to hold interest rates.
According to the minutes of the Federal Open Market Committee meeting held on December 9 and 10, the majority of monetary policy makers believe that further interest rate cuts would be appropriate in the medium term, provided that inflation continues to decline, with varying views on the timing and size of the cuts.
Following the release of the minutes, the odds of a rate cut at the January meeting fell to about 15%, according to federal funds contracts and the CME FedWatch tool.
Despite short-term pressures, gold still maintains a positive outlook in the medium term, supported by upward momentum in the relative strength index (RSI), reflecting continued investor appetite for the precious metal.
