Gold Prices Near $4,050 per Ounce

SadaNews - Gold slightly decreased as the market assessed the chances of the Federal Reserve making another interest rate cut before the end of the year.

The yellow metal was trading near $4,050 per ounce after suffering modest weekly losses. Many officials from the U.S. central bank expressed caution regarding the monetary policy path, although the President of the Federal Reserve Bank of New York, John Williams, stated that he sees room for lowering borrowing costs in the near term. The yellow metal reduced its losses on Friday following Williams' remarks, but it ended the session down slightly.

The closure of the U.S. government has delayed the release of economic data that markets usually rely on to assess the chances of a cut.

Retail sales data and producer prices for September are scheduled to be released on Tuesday, in addition to unemployment claims on Wednesday, which will provide a necessary reading on the state of the economy. Futures traders anticipate a slightly over 60% chance of a rate cut of a quarter point next month.

Gold Remains High This Year

Gold has been in a consolidation phase since it soared to a record high above $4,380 per ounce on October 20. It remains up about 55% this year, supported by increasing trade and geopolitical uncertainty, as well as concerns about declining fiscal outlooks for many governments.

Spot gold dropped 0.3% to $4,051.69 per ounce by 12:03 PM in Singapore after falling 0.3% on Friday. The Bloomberg Dollar Spot Index remained steady. Silver was unchanged, while platinum and palladium rose.