Gold prices finally rebounded after two consecutive days of pressure. This slight increase occurred as market participants began to reconsider the chances of an interest rate cut by the Federal Reserve next month. Previously, market sentiment had been hit by weakening expectations that the Fed would soon lower borrowing costs.

In recent days, several Fed officials have expressed a cautious outlook. They believe that inflation could slow for longer or stall again, making an interest rate cut imminent. Some officials, such as Jeff Schmid and Susan Collins, have even openly rejected a December rate cut. Meanwhile, Raphael Bostic has opted for a wait-and-see approach to economic developments.

On the other hand, gold has been boosted by expectations that the Fed may add liquidity to financial markets. The latest forecast from Barclays suggests that the central bank could begin purchasing Treasury bonds earlier than previously scheduled, in February. This move is usually seen as a signal of easing financial conditions, which tends to make gold more attractive. In Monday morning trading in Singapore, gold rose around 0.3% to $4,097 per ounce. Silver prices also strengthened, while palladium and platinum traded flat. While the gains were modest, these developments indicate that the gold market remains sensitive to changes in the Fed's stance and global economic conditions. (az)

Source: Newsmaker.id