Gold price edges lower as market fades on Fed rate cut
Gold prices edged lower on Monday, as reduced expectations of a US interest rate cut next month continue to weigh on the safe-haven metal.Spot gold was around $4,069 an ounce, down 0.3% on the day, after briefly rising above the $4,100 level earlier. US gold futures saw similar moves, trading near $4,071 an ounce for a 0.5% loss.Click on chart for live prices.Meanwhile, the US dollar index inched higher, making bullion expensive for holders of other currencies.Investors are still seeking clarity over the Federal Reserve’s monetary policy following the end of the longest government shutdown in US history, which had delayed the release of official economic data.At the moment, an increasing number of Fed policymakers have maintained a hawkish stance on rate cuts for the US central bank’s next meeting in December. A rate cut would bolster the appeal of gold, which yields no interest.Traders are currently pricing in a 45% probability of a 25-basis-point rate cut in December, down from more than 60% last week, according to the CME FedWatch tool.The market is seeing “some back and forth choppy action ahead of what is expected to be a release of a deluge of economic data now that the US government has reopened,” said David Meger, director of metals trading at High Ridge Futures.“Right now, there’s a lesser expectation for additional Fed rate cuts, which has dented optimism for gold,” he added.Why analysts see $5,000 gold priceStill, the precious metal has risen by more than 55% this year, tracking towards its best annual performance since 1979, amid rising safe-haven demand and robust central bank purchases.(With files from Reuters)Sponsored: Secure your wealth today — buy gold bullion directly through our trusted partner, Sprott MoneyWeiter zum vollständigen Artikel bei Mining.com
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