Gold prices stabilize above $2000 as central banks increase gold purchases

Gold prices are struggling to hold above $2,000 an ounce as the Federal Reserve signals that it will maintain higher interest rates for the foreseeable future. The central bank's November monetary policy meeting minutes reveal a slight tightening bias and a focus on keeping monetary policy sufficiently restrictive to return inflation to its 2 percent objective. While the gold market is not showing much reaction to the Fed's stance, the committee acknowledges growing risks to the economy and the impact of higher volatility in bond yields. Analysts suggest that Fed intervention in the bond market to keep yields anchored could potentially ignite a significant rally in gold.