Bond-Market Debate Over Fed’s Path in 2026 Is About to Heat Up

Gold prices have steadied after a five-day rally, as investors are closely monitoring upcoming US economic data that may influence the Federal Reserve's decisions on interest rates. This pause in gold's upward momentum comes amid anticipation of potential rate cuts by the Fed.

Gold and silver futures began the week on a positive note, rising ahead of crucial economic reports that could influence the Federal Reserve's interest rate decisions for 2026. This upward trend reflects investor optimism in the precious metals market.

Gold and silver futures opened the week on a positive note, buoyed by expectations surrounding key economic reports that may influence the Federal Reserve's interest rate decisions in 2026. This upward trend reflects a growing investor interest in precious metals as safe-haven assets amid economic uncertainties.

The Bank of England (BOE) is anticipated to announce a cut in interest rates, aligning its policy direction with the European Central Bank (ECB), which is currently in a favorable position regarding inflation management. This decision comes as five European central banks prepare to reveal their monetary policies, with the BOE being the only one expected to follow the Federal Reserve's lead in rate cuts.

The last full trading week of 2025 commenced with Wall Street traders adopting a cautious stance as they awaited crucial economic data that could influence the Federal Reserve's interest rate decisions. Stocks, bonds, and the dollar exhibited volatility amid this uncertainty.

The Federal Reserve has announced a quarter-point interest rate cut, reducing the target range to 3.5% to 3.75%. This decision is expected to provide some relief to borrowers, although it is noted that long-term payments may not see significant changes as they are influenced by other factors beyond the Fed's benchmark rates.