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Gold slips to one-week low as traders scale back US rate cut bets
Traders cut odds of a December Federal Reserve rate cut to 50%, driving gold prices down more than 4% over two days, amid mixed U.S. labor data and stronger dollar.
- On Friday, gold prices fell as the dollar firmed amid uncertainty over further Federal Reserve rate cuts, hitting a one-week low before rising on Tuesday with a weaker dollar and soft U.S. employment numbers.
- Investors scaled back bets on another interest-rate cut this year, sending prices down over 3% on Friday and 1% on Monday as shifting U.S. employment data and the dollar influenced expectations.
- Spot gold was at $4,059.39, while U.S. gold futures for December delivery fell 0.4% to $4,059.20; the dollar index fell 0.2%, and U.S. continued jobless claims rose to 1.9 million in the week ended October 18.
- Gold's role as a non-yielding asset means it tends to perform when rates fall, and Deutsche Bank analysts expect elevated official demand to support a bullish bias and USD 4,000/oz price forecast for next year.
- The CME FedWatch tool shows markets now see a 50% chance for a December rate cut, up from 46%, while awaiting the Fed minutes due on Wednesday and September jobs data on Thursday.
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12 Articles
12 Articles
Sharp Disagreements Over Economy Threaten Federal Reserve Interest Rate Cut
WASHINGTON (AP) — What was once seen as a near-certain cut in interest rates next month now looks more like a coin flip as Federal Reserve officials sharply disagree over the economy's health and whether stubborn inflation or weak hiring represent a bigger threat.
·New York, United States
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New Strait Times+2 Reposted by 2 other sources
Gold slips to one-week low as traders scale back US rate cut bets
LONDON: Gold prices fell to their lowest levels in more than a week on Tuesday as fading bets on a Federal Reserve interest rate cut next month dented demand ahead of delayed US economic data releases this week.
·Malaysia
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Despite the drop, gold has still accumulated gains of over 50% this year, and analysts predict that prices will continue on an upward trajectory.
·Brazil
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Coverage Details
Total News Sources12
Leaning Left1Leaning Right1Center2Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 25%
C 50%
R 25%
Factuality
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