Gold experienced a decline, driven by profit-taking activities following a recent surge to a six-week high. Market sentiment is heavily influenced by anticipation of a US interest rate cut, expected to be announced at the upcoming Federal Reserve meeting. Economic data and Fed official statements contribute to this expectation, leading investors to closely monitor upcoming economic releases for further insights.
- Gold fell 1% to below $4,200 per ounce.
- Investors took profits after gold reached a six-week peak on Monday.
- There are mounting expectations of a US interest rate cut next week.
- Traders assign an 88% probability to a 25bps rate reduction by the Fed.
- US manufacturing sector contracted for the ninth consecutive month in November.
- Investor focus is on the November ADP employment report and delayed September PCE data.
The decline reflects a market balancing profit realization with underlying expectations. While the price experienced a setback, the overall sentiment suggests a potential future lift. Key economic indicators will likely play a crucial role in shaping the direction of the asset’s price.