Spot gold was down 0.2% at $4,189.49 per ounce

Gold prices edged slightly down on Monday, as investors stayed cautious ahead of the U.S. central bank’s two-day policy meeting and Chair Jerome Powell’s remarks for clues on future monetary policy.

Spot gold was down 0.2% at $4,189.49 per ounce by 1850 GMT. U.S. gold futures for February delivery settled 0.6% lower at $4,217.7 per ounce.

The market is waiting for the Fed decision and for more guidance on policy, said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Gold remains attractive as fundamentals remain strong and central bank buying continues, Grant said, adding that a move toward $5,000 per ounce in the first quarter of 2026 is within reach.

Markets widely expect a 25-basis-point rate cut, with traders seeing a 90% probability, up from around 66% in November.

The Fed’s Open Market Committee (FOMC) will conclude its meeting on Wednesday with its final policy decision of the year, followed by a press conference from Powell.

Lower interest rates raise non-yielding gold’s attractiveness.

Morgan Stanley sees further upside in gold, driven by a declining U.S. dollar, strong ETF buying, continued central bank purchases, and safe-haven demand.

Silver shed 0.5% to $57.98 per ounce, after reaching a record high of $59.32 on Friday.

Silver is usually a follower of big brother gold, but (in) the past few weeks silver has actually led the gold market, Jim Wyckoff, senior analyst at Kitco Metals said, adding that prices will push above $60 an ounce and could even challenge $70 an ounce by year-end.