First reported on MINING.com(Gold price edges lower as market fades on Fed rate cut)
30 Second Briefing
Gold prices edged lower on Monday, with spot gold at approximately $4,069 an ounce, down 0.3%, as expectations for a US interest rate cut in December diminished. US gold futures mirrored this trend, trading near $4,071 an ounce for a 0.5% loss, influenced by a stronger US dollar making bullion more expensive for non-dollar holders. The probability of a 25-basis-point rate cut has fallen to 45% from over 60% last week, as the Federal Reserve maintains a hawkish stance following the end of the US government's longest shutdown.
Technical Brief
- Spot gold fell to approximately $4,069 an ounce, a 0.3% decrease, as expectations for a December US interest rate cut diminished.
- US gold futures mirrored this trend, trading near $4,071 an ounce, marking a 0.5% loss.
- The US dollar index rose, making gold more expensive for holders of other currencies.
- The probability of a 25-basis-point rate cut in December dropped to 45% from over 60% last week.
- A hawkish stance from Fed policymakers follows the end of the US government's longest shutdown.
- Gold's appeal is typically bolstered by rate cuts, as it yields no interest.
- Gold has risen over 55% this year, heading towards its best annual performance since 1979.
- Central bank purchases and safe-haven demand have driven gold's price increase.
Context From Recent Coverage
- The same trading and bullion houses, notably High Ridge Futures and Sprott Money, also feature in the related piece “Gold price falls 3% amid market selloff”, underscoring how closely their positioning and commentary track shifts in Fed rate-cut probabilities across multiple trading sessions.
- With gold up 55% this year in this article and a more than 50% rise also cited in the East Africa Metals illegal mining report, the database shows that elevated prices are now influencing both financial-market dynamics and on-the-ground behaviour in gold-producing regions.
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