Gold Starts the Week Under Fed Pressure
Gold Starts the Week Under Fed Pressure
Gold prices opened the week lower as expectations of a Federal Reserve rate cut weakened. Last week, gold had gained nearly 5% on hopes that delayed U.S. economic data would support monetary easing.
Data delays reverse expectations
U.S. Labor Secretary Chavez-Deremer stated that September payroll data had not been processed and October inflation figures were still incomplete, increasing uncertainty around the Fed’s next steps.
Rate-cut probability declines
According to CME Group, the probability of a 25 bps rate cut in December dropped from 67% to 43%.
Gold prices open the week lower
Spot gold fell 0.57% to $4,063, while gram gold slipped 0.52% to ₺5,523.
Cautious signals from Fed officials
St. Louis President Alberto Musalem urged caution. Cleveland President Beth Hammack highlighted the role of restrictive policy in combating inflation. Minneapolis President Neel Kashkari opposed an October rate cut and advised caution.
