"Gold surged on Monday, reaching its highest level in three weeks as renewed expectations of a Federal Reserve rate cut and persistent geopolitical tensions lifted safe-haven demand. Weak US data on consumer sentiment and employment reinforced views that monetary easing could continue in December. The University of Michigan's sentiment index declined, while October job losses pointed to growing economic risks."
"Traders now assign about a 65% probability to another rate cut, as markets brace for a series of speeches from Fed officials this week that could provide further clarity on the policy path. While cautious remarks could benefit US treasury yields, a soft tone could boost gold's prices. Geopolitical uncertainty added to the bullish tone, with renewed hostilities in the Middle East and Eastern Europe supporting gold's appeal as a safe-haven asset."
Gold surged to a three-week high as markets priced in renewed expectations of a Federal Reserve rate cut and geopolitical tensions increased safe-haven demand. Weak US consumer sentiment and October job losses reinforced expectations that monetary easing could continue in December, with traders assigning roughly a 65% probability to another rate cut. A series of upcoming speeches from Fed officials could sway treasury yields and gold depending on their tone. Renewed hostilities in the Middle East and Eastern Europe supported the metal's appeal, while optimism about a potential US government shutdown resolution and ETF outflows of 22 tons tempered investor demand.
Read at London Business News | Londonlovesbusiness.com
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