The U.S. Federal Reserve is expected to cut interest rates by 25 basis points at its final policy meeting of the year, as traders anticipate a shift in monetary policy. This comes amidst mixed economic data, including a 0.3% rise in U.S. consumer prices for the fourth consecutive month and a 3% year-over-year increase in the Producer Price Index (PPI) in November. The dollar has shown strength, heading for its best week in a month, while gold prices remain below $2,700 per ounce, with futures averaging $2,709.51. Gold has faced resistance around the $2,723 level, reflecting cautious market sentiment ahead of the Fed's decision. Analysts project further rate cuts in 2025, though uncertainty persists regarding the central bank's long-term plans. Meanwhile, Wall Street anticipates that falling money-market yields could prompt investors to reallocate portions of the $7.124 trillion cash pile into stocks and bonds next year. In Colombia, the dollar traded between $4,320 and $4,352, closing at an average of $4,335, down 26 pesos from the previous day. The Brazilian real, meanwhile, opened trading down 0.50% to R$5.9755.
US data has Fed striding toward rate cut next week, and tip-toeing into 2025 - Reuters https://t.co/xHqgDu1URR
US dollar set for best week in a month on cautious Fed outlook https://t.co/J7qvtkZTOQ via @Reuters https://t.co/vGIcSzRjxc
#Gold poised for weekly gain ahead of potential Fed rate cut https://t.co/kZOA9fePac via @Reuters https://t.co/IxclIwF9T7