Gold holding support as minutes show Federal Reserve remains focused on inflation in 2026

NEW YORK (December 30) In a relatively quiet holiday trading session, the gold market is seeing little reaction to the minutes from the Federal Reserve’s December monetary policy meeting, which suggest the central bank is not in a major hurry to cut rates in 2026.

In early December, the Federal Reserve cut interest rates by 0.25%, easing rates for the third straight quarter. The move was roughly in line with market expectations; however, the central bank maintained its outlook for only two rate cuts next year.

The minutes from the monetary policy meeting indicate that U.S. central bankers remain concerned about inflation, even as their economic outlook remains uncertain.

“With respect to the extent and timing of additional adjustments to the target range for the federal funds rate, some participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for some time after a lowering of the range at this meeting. A few participants observed that such an approach would allow policymakers to assess the lagged effects on the labor market and economic activity of the Committee’s recent moves toward a more neutral policy stance while also giving policymakers time to acquire more confidence about inflation returning to 2 percent,” the minutes said. “Participants judged that a careful balancing of risks was required and agreed on the importance of well-anchored longer-term inflation expectations in achieving the Committee’s dual-mandate objectives.”

The gold market continues to show little reaction to the minutes. Spot gold last traded at $4,365.90 an ounce, up nearly 1% on the day.

KitcoNews