Gold Prices Seek Balance: Fed and Economic Data Are Impactful

Gold Prices Stabilize

Gold has stabilized, trading just below $4,100 as optimism decreases about the Federal Reserve not cutting interest rates next month. It had lost more than 2% in the previous session.

Market Expectations

The Fed's officials' lack of a convincing stance to lower borrowing costs has limited expectations for interest rate cuts in the markets. Market participants and policymakers are awaiting the release of delayed economic data due to the longest government shutdown in U.S. history.

Data Ambiguity and Gold Trends

The six-week absence of labor market and inflation data in the world's largest economy has led some officials to be hesitant about further interest rate cuts next month. Hebe Chen, a strategist at Vantage Markets, stated, "The shutdown has ended, but the data ambiguity it created is still affecting the markets. The coming weeks will reveal figures we can hardly grasp."

Gold and Safe Haven Search

Chen remarked, "Despite a slight pullback, the medium to long-term trend of gold remains intact. The softening of dollar expectations and investors' search for safe havens amid uncertainties support this."

Gold Price and Other Metals

On Monday at 09:04 Singapore time, the gold price rose to $4,088.16. The Bloomberg Dollar Spot Index showed a 0.1% increase. Silver and palladium saw an increase, while platinum remained stable.