Gold dips from two-week high on profit-taking, Fed cues
Gold prices edged lower on Thursday as traders booked profits following the metal’s nearly two-week high in the previous session, while markets assessed the possibility of a U.S. interest rate cut in December amid mixed signals from the Federal Reserve.
Spot gold fell 0.5% to $4,145.08 per ounce at 0405 GMT, and U.S. gold futures for December delivery dropped 0.6% to $4,140.80, News.Az reports, citing Reuters.
GoldSilver Central MD Brian Lan said investors were consolidating positions as the Fed’s next move remains unclear.
Conflicting views within the Fed have increased hedging flows into swaptions and overnight-rate derivatives, with investors seeking protection from policy uncertainty. Some officials, including New York Fed President John Williams and Governor Christopher Waller, signaled that December easing may be justified due to labor-market weakness, which is weighing on Treasury yields.
Their perspective contrasts with several regional Fed presidents who prefer waiting for clearer progress toward the 2% inflation target before easing further. Meanwhile, Kevin Hassett, a frontrunner to replace Jerome Powell as Fed Chair, has echoed President Donald Trump’s view that interest rates should be lower.
Futures markets now reflect an 85% probability of a December rate cut, boosting sentiment for non-yielding gold, which benefits from lower interest rates.
Data released Wednesday showed weekly jobless claims falling, though the labor market remains strained. U.S. consumer confidence also weakened in November over concerns about jobs and household finances.
In other precious metals, spot silver dipped 0.9% to $52.89 per ounce, platinum rose 1.4% to $1,611.04, and palladium fell 0.9% to $1,409.87.
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