Gold prices experienced a significant rise, reaching approximately $4,000 per ounce, driven by increased expectations of a near-term interest rate cut by the Federal Reserve. Weaker-than-expected labor market data contributed to these expectations, while a softer US dollar and persistent economic uncertainty further bolstered gold’s appeal.
- Gold prices rose to around $4,000 per ounce.
- Soft labor data reinforced expectations of a near-term Federal Reserve rate cut.
- Challenger job cuts tripled in October, the largest increase in over two decades.
- Markets raised expectations for a December rate cut, now pricing in about a 69% probability.
- A softer US dollar supported gold by making it less expensive for foreign buyers.
- Economic uncertainty tied to the prolonged government shutdown maintained its safe-haven appeal.
- Bullion is set for a muted performance for the week.
These conditions suggest that gold is benefiting from a confluence of factors. Concerns about the strength of the economy, as reflected in job market figures, are prompting investors to anticipate looser monetary policy, which tends to favor gold. Simultaneously, a weaker dollar is making gold more attractive to international buyers, while ongoing economic and political instability is reinforcing its status as a safe haven asset. However, the overall weekly performance for gold may be somewhat subdued despite these positive influences.