Gold prices have declined for the fourth consecutive session, reaching approximately $4,030 per ounce. This downturn is attributed to reduced expectations of a US interest rate cut, particularly in December, as investors await upcoming US economic data. Hawkish signals from Federal Reserve officials and the absence of recent US data have contributed to this shift in market sentiment.
- Gold prices fell to around $4,030 per ounce.
- This marks a fourth consecutive session of losses.
- Diminished expectations for a US interest rate cut are a factor.
- Investors are awaiting delayed US economic reports this week.
- Hawkish remarks from Fed officials have lessened hopes for a December rate cut.
- Fed Vice Chair Philip Jefferson suggested proceeding “slowly” with rate reductions.
- Thursday’s September jobs report and Wednesday’s Fed meeting minutes are being closely watched.
- Markets currently imply a 46% probability of a 25bps rate cut in December.
- This is down from over 60% a week ago.
The current market conditions suggest a bearish outlook for gold in the short term. The strengthening US dollar and the potential for continued high interest rates are creating headwinds. The health of the US economy, as reflected in employment data, will be a critical factor in determining future price movements. Any indication of a resilient economy could further diminish the likelihood of a near-term rate cut, potentially putting additional downward pressure on gold.