Gold continues to be perceived as a safe-haven asset, offering a reliable store of value during times of economic uncertainty.

U.S. gold futures have seen a modest rise of 0.26%, reaching $2,614.91, largely due to a slight decline in the dollar index.

Market expectations for interest rate cuts in 2025 have diminished, with traders now anticipating only two quarter-point reductions instead of four.

Investors are closely monitoring the upcoming U.S. personal consumption expenditure (PCE) data, which is crucial for understanding inflation trends.

The core PCE report is particularly anticipated as it serves as the Federal Reserve's preferred measure of inflation.

Investor sentiment remains cautious due to the Federal Reserve's hawkish stance, which has limited trading activity during the holiday season.

San Francisco Fed President Mary Daly and other policymakers have indicated that while rate cuts are likely next year, they will proceed with caution.

Recent economic reports revealed that the U.S. economy grew at a rate of 3.1% in the third quarter, surpassing earlier estimates and contributing to a cautious Fed outlook.

In legislative news, the U.S. Senate passed a temporary funding measure to avoid a government shutdown related to the debt ceiling until mid-March 2025.

Copper prices have remained subdued, influenced by a strong dollar and seasonal slowdowns in industrial production as the year ends.

The U.S. Dollar Index is nearing a peak of 108.00, reflecting the dollar's strength against other currencies amid the Fed's hawkish signals.

While gold is considered a safe investment, it carries risks, and potential investors are advised to conduct thorough research before making decisions.