Gold prices fell to their lowest in more than a week on Tuesday (November 18th) as fading bets on a Federal Reserve interest rate cut next month weighed on demand ahead of the release of delayed US economic data this week.
Spot gold fell 0.3% to $4,033.29 an ounce, as of 09:09 GMT, after earlier hitting its lowest level since November 10. US gold futures for December delivery fell 1% to $4,032.60 an ounce.
"Market participants are expecting a US rate cut following more aggressive comments from Fed officials," said UBS analyst Giovanni Staunovo. "I expect gold prices to bottom soon, as I still see the Fed cutting rates several times over the next few quarters, and central bank diversification into gold remains strong." The market has cut its bets for a rate cut next month to just over 46%, down from 67% last week, according to the CME FedWatch tool.
The longest-ever U.S. government shutdown, which ended last week, led to a halt in official economic data, leaving policymakers and traders scrambling ahead of next month's Fed policy meeting.
Traders had hoped the resumption of official data would support a December rate cut, but those hopes faded as more Fed officials signaled caution last week.
Fed Vice Chairman Philip Jefferson said on Monday that the central bank needs to "proceed slowly" with further rate cuts. Non-yielding gold tends to perform well in low-interest rates and during times of economic uncertainty.
Meanwhile, the market awaits the release of delayed U.S. data this week, with minutes from the Fed's last meeting due on Wednesday and September non-farm payrolls on Thursday. "We still see a favorable long-term fundamental backdrop for gold. The US economy continues to weaken, US interest rates are expected to fall, and the US dollar is expected to weaken as a result," said Julius Baer analyst Carsten Menke.
Elsewhere, spot silver was steady at $50.2 per ounce, platinum rose almost 0.1% to $1,534.29, and palladium was steady at $1,393.57. (alg)
Source: Reuters.com
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" ...
Gold prices hit another record high, while silver held near its all-time high. This rise was driven by two major factors: the escalating Greenland crisis and turmoil in the Japanese government debt ma...
Gold prices remained near all-time highs on Tuesday, hovering around $4,670 per ounce. Demand for safe haven assets remained strong as US-European trade tensions escalated, prompting investors to refr...
Gold and silver hit new records after US President Donald Trump threatened to impose tariffs on eight European countries that oppose his Greenland plan. This situation immediately pushed investors int...
Gold price rises on Friday, poised to end with weekly gains of nearly 4% as an employment report in the US was mixed, with the economy adding fewer jobs than projected. Still, the Unemployment Rate ti...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...