Gold prices rose by around 1.7% to around US$4,134 per troy ounce as market participants became increasingly confident that the Federal Reserve would cut interest rates at its December 9-10 meeting. Dovish comments from Fed Governor Christopher Waller and New York Fed President John Williams fueled expectations of a rate cut, particularly amid signs of weakness in the US labor market and the delay in several data releases due to the government shutdown.

Swap traders now assess the probability of a December rate cut at nearly 80%, although there are still differing views within the Fed itself following the September and October rate cuts. Gold, which does not yield a yield, typically benefits from falling interest rates. The market will be watching a series of delayed economic data, such as September retail sales and producer inflation data, as well as jobless claims, due this week, for additional clues to the Fed's policy direction.

Several analysts believe the path to a rate cut remains difficult to predict, potentially allowing gold to move sideways around current levels, creating a two-way street for traders. Despite being in a consolidation phase after hitting a record high above US$4,380 per ounce in October, gold prices are still up around 56% year-to-date, supported by geopolitical tensions, fiscal concerns, and risk-off sentiment, which has also boosted silver, platinum, palladium, and some base metals. (asd)

Source: Newsmaker.id