The precious metal has enjoyed healthy buying interest this year as the US central bank hints at an easing of credit conditions.

Wall Street retreated on Monday as investors locked in profits after recent rallies fuelled by tech optimism.

Rates stayed unchanged for the fourth meeting in a row. The Central Bank signaled openness to cutting if price increases keep cooling

Equities surged in the last two months of last year on expectations the US central bank will slash interest rates several times this year as inflation comes down, the labour market softens, and the economy heads toward a soft landing.

Market sentiment has been largely positive since the Fed's last meeting, when it indicated the rate-hike cycle could be nearing its end, with inflation beginning to slow.

Asian markets were mixed Tuesday after Federal Reserve officials looked to dampen expectations for a series of interest rate cuts next year, while the yen edged up ahead of a closely watched Bank of Japan policy decision later in the day.

Equities look set to end the year on a high after the Fed suggested it will begin loosening monetary policy after a string of data showed inflation coming down and the economy on course for a soft landing.

Traders are betting on 140 basis points of cuts over the next year, Bloomberg News said.

The FOMC kept its federal funds rate between 5.25 and 5.5 percent, still at a 22-year-high. What it means for other economies

All three main indexes on Wall Street rose Friday but Asian traders struggled to extend the rally.

Asian markets struggled Thursday following another tepid performance on Wall Street, with focus on the release of key US inflation data that comes as traders ramp up bets the Federal Reserve will cut interest rates next year.

The central bank recently voted to hold its key lending rate at a 22-year high, lifting expectations that it is done hiking interest rates as it seeks to bring inflation down firmly to its long-term target of two percent.

A string of indicators in recent weeks has suggested the US jobs market is softening and the economy slowing down -- but not quickly enough to cause much concern about a recession.

The central bank is trying to bring back inflation to its 2% goal without hampering the U.S. economy

The Federal Reserve is widely expected to announce Wednesday that it will keep interest rates at a 22-year high in a bid to tackle inflation without harming the buoyant US economy.

US inflation is "still too high" despite a recent slowdown, Federal Reserve Chair Jerome Powell said Thursday, leaving the door open for a new interest rate hike.

The US Federal Reserve's fight against inflation seems to be heading in the right direction, while the US economy remains resilient, a senior Fed official said Wednesday.

US Federal Reserve officials agreed last month they should hold interest rates high "for some time" in their ongoing fight against inflation, according to minutes of the meeting published Wednesday.

After 11 interest rate increases since March last year, inflation has fallen sharply but remains stuck stubbornly above the Fed's long-run target of two percent per year -- keeping pressure on officials to consider further policy action.

The Colombian-American economist is the U.S. representative to the World Bank and will be a Fed board member after lobby from Senator Bob Menéndez.

With inflation at a 40-year high, President Joe Biden on Wednesday signed an executive order instructing the Treasury and Commerce Departments and corresponding agencies to report back to him on the future of money as the country explores if it should create its own crypto-like U.S. Central Bank Digital Currency.  

The United States senate has voted Janet Yellen to serve as the next chair of the Federal Reserve.