Gold Prices Fluctuate with the Possibility of Fed Interest Rate Cuts

Fluctuation in the Gold Market

Gold prices experienced a slight decline as market analysts assessed the likelihood of a Fed interest rate cut before the end of the year.

Conflicting Statements from Fed Officials

New York Fed President John Williams signaled that a short-term reduction in borrowing costs could be possible due to a weakening labor market. However, the more cautious statements from other officials caused uncertainty in the markets. Following Williams' comments, bullion gold managed to recover some of its losses on Friday but closed the session with a slight decline.

Delay in Economic Data

The U.S. government shutdown delayed the release of economic indicators. The retail sales and producer price data for September, which will be announced on Tuesday, along with the expected jobless claims on Wednesday, will provide important insights about the economy's temperature. Futures traders are pricing in a likelihood of a quarter-point interest rate cut next month at over 60%.

Performance Throughout the Year

Gold reached a record level of 4,380 dollars per ounce on October 20. Gold prices have increased by 55% year-to-date, supported by rising trade and geopolitical uncertainties, as well as concerns over many governments' deteriorating fiscal conditions.

Current Situation

Spot gold traded sideways at 4,064.32 dollars per ounce as of 08:50 Singapore time on Friday, following a 0.3% decline. The Bloomberg Dollar Spot Index rose by 0.1%. Additionally, slight increases were recorded in other precious metals such as silver, platinum, and palladium.