Gold prices held steady on Thursday amid profit-taking after hitting a near two-week high in the previous session, as investors weighed the possibility of a U.S. interest rate cut in December amid mixed signals from the Federal Reserve.
Spot gold traded at $4,160.43 per ounce, slightly lower, while U.S. gold futures for December delivery remained stable at $4,161.80 per ounce.
Brian Lan from Gold Silver Central noted that investors were “taking profits after yesterday’s rally… it’s unclear what the Fed will do next, so gold remains steady.”
Some Fed officials, including New York Fed President John Williams and Fed Governor Christopher Waller, indicated that a rate cut next month could be justified due to weakness in the labor market, which is putting pressure on Treasury yields.
Yields on the benchmark 10-year U.S. Treasury note also held near their lowest levels in a month on Wednesday, reflecting market caution.
Diverging Views on Monetary Policy
Other officials have urged a pause in monetary easing until inflation shows a clear move toward the 2% target.
Kevin Hassett, the leading candidate to succeed Jerome Powell as Fed Chair, stated that interest rates should be lower, aligning with former President Donald Trump’s position.
According to CME Group’s FedWatch tool, the market is pricing in an 85% chance of a rate cut in December, supporting gold’s appeal as a non-yielding asset that tends to rise when interest rates fall.
Wednesday’s data showed a decline in weekly jobless claims, though the labor market still struggles to provide enough jobs for those seeking work.
Performance of Other Precious Metals
- Silver rose 0.54% to $53.63 per ounce in spot trading.
- Platinum gained 2% to $1,621.65 per ounce.
- Palladium increased 0.81% to $1,428.20 per ounce.
The performance highlights the ongoing influence of U.S. monetary policy expectations on precious metals, with investors closely monitoring any moves from the Federal Reserve in the coming weeks.
