Gold prices showed slight fluctuations as market participants weighed the growing likelihood of a U.S. interest rate cut against the potential for a peace agreement in Ukraine.
اضافة اعلان
The precious metal traded near $4,135 per ounce after closing the previous session largely unchanged. Lagging economic data strengthened bets that the Federal Reserve may lower interest rates at its upcoming meeting.
A slight increase in September retail sales indicated that several months of strong spending are beginning to lose momentum, while consumer confidence posted its largest decline since April.
Expectations for a rate cut were reinforced as Kevin Hassett, director of the White House National Economic Council, emerged as the frontrunner to head the Federal Reserve, particularly given his alignment with President Donald Trump in supporting lower borrowing costs, according to Bloomberg.
Gold typically benefits from low interest rates because it yields no interest. Swap traders currently see more than an 80% probability of a quarter-point cut in December.
“Next week’s Fed decision is the real Pandora’s box of risks this year and could trigger a series of unexpected reactions,” said Hebe Chen, an analyst at Vantage Markets in Melbourne. “Without a strong economic link confirming expectations, any optimism remains fragile, and recent stock and crypto volatility shows how quickly sentiment can change.”
Gold’s gains eased slightly after ABC News reported that Ukrainian officials had agreed to a plan to end the war with Russia, which could reduce demand for safe-haven assets.
Gold retreated from its peak above $4,380 per ounce last month but remained above $4,000. The metal is on track for its best annual performance since 1979, rising more than 55% this year, supported by central bank purchases and strong investor flows driven by so-called “currency devaluation” trades.
Gold rose 0.1% to $4,135.73 per ounce by 8:52 a.m. Singapore time. The Bloomberg Dollar Spot Index was steady after falling 0.3% in the previous session. Silver declined 0.2%, while platinum and palladium also retreated.
