Gold prices rose in European trading on Monday, moving into positive territory for the first time in three sessions as the US dollar’s advance paused in the foreign-exchange market.
The shift came after less hawkish comments from several Federal Reserve officials boosted expectations for a December rate cut, ahead of Tuesday’s delayed US inflation data.
Price Overview
• Gold prices today: Gold climbed 0.35% to 4,077.74 dollars from an opening level of 4,065.23 dollars, after touching a low of 4,040.25 dollars.
• On Friday, gold slipped 0.3%, marking a second straight daily loss under pressure from a stronger US dollar.
• For the week, gold fell 0.5%, its fourth weekly decline in five weeks, amid weakening investment demand.
US Dollar
The dollar index dipped 0.1% on Monday, retreating from a six-month high of 100.40, reflecting a pause in US dollar strength against major and minor currencies.
Beyond profit-taking, the dollar eased as expectations grew for a December Fed rate cut.
US Interest Rates
• New York Fed President John Williams said Friday he expects the central bank to lower its policy rate from here, noting labor-market weakness poses a bigger economic threat than elevated inflation.
• Following his remarks, CME’s FedWatch tool showed market pricing for a 25-basis-point rate cut in December rising from 43% to 70%, while odds of no change fell from 57% to 30%.
• Investors now await Tuesday’s release of delayed US September inflation data to refine these expectations.
Gold Outlook
Senior analyst Jigar Trivedi of Reliance Securities said the dollar index remains elevated near its six-month highs above 100, and sustained trading above this level would place additional pressure on gold.
He added that gold is likely to trend lower over the next three to five weeks, given a lack of strong catalysts for bulls and an absence of significant geopolitical tensions.
SPDR
Holdings in SPDR Gold Trust, the world’s largest gold-backed ETF, rose 1.14 metric tons on Friday to 1,040.57 metric tons, rebounding from 1,039.43 metric tons — the lowest level since 11 November.
