Gold prices were stable in Tuesday-Wednesday morning trading, with bullion trading around US$4,135 per troy ounce. Market participants were weighing two key sentiments: hopes for a US interest rate cut and the possibility of a peace agreement in Ukraine. Delayed US economic data supported speculation that the Federal Reserve would cut interest rates at its next meeting, after retail sales rose only slightly in September and consumer confidence recorded its deepest decline since April.
The prospect of a lower interest rate environment was also reinforced by reports that Kevin Hassett, Director of the White House National Economic Council, had emerged as the frontrunner for the next Fed Chair and was seen as aligned with President Donald Trump's support for lower borrowing costs. This is fundamentally positive for gold, which typically benefits from low interest rates because it offers no yield.
However, gold's potential upside was tempered by media reports that Ukrainian officials had agreed to a plan to end the war with Russia, potentially reducing demand for safe-haven assets. At around 7:41 a.m. Singapore time, gold edged up 0.1% to US$4,135.08 per ounce. The Bloomberg Dollar Index ended down 0.3% in the previous session, while silver and palladium were relatively flat, and platinum gained slightly. (az)
Source: Newsmaker.id