"Gold edged slightly higher above USD 4,000 per ounce on Monday, stabilizing after a period of selling pressures. Gold benefited from the Federal Reserve's rate cut but could come under pressure as markets consider Powell's comments. The Fed Chair suggested that further easing in December was not guaranteed. Markets now price in roughly a 70% probability of another reduction, down from more than 90% before his comments."
"This week's key data releases, including the ISM manufacturing and services PMIs and the ADP employment report, could shape expectations ahead of the next FOMC decision. Any signs of an economic downturn and fragile labour conditions could raise expectations of a dovish monetary policy into 2026 and benefit the precious metal. Conversely, resilient data could benefit US treasury yields and weigh on gold."
Gold stabilized slightly above USD 4,000 per ounce after recent selling pressures. The metal received support from the Federal Reserve's rate cut, but traders reassessed prospects after the Fed Chair suggested further easing in December was not guaranteed. Markets now assign about a 70% probability of another rate reduction, down from over 90% beforehand. Upcoming ISM manufacturing and services PMIs and the ADP employment report could shift expectations ahead of the next FOMC meeting. Signs of economic downturn and weak labour conditions would bolster dovish policy expectations and benefit gold, while resilient data could lift US Treasury yields and pressure the metal. Ongoing geopolitical tensions continue to underpin safe-haven demand and limit downside risks.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]