Rate Cut on the Radar, Gold to Correct First or to Fly?!
Gold prices (XAU/USD) continued to rise to the $4,140–$4,150 area early in the Asian session on Wednesday (November 12th). The boost came from bets on a Fed rate cut before the end of the year, which lowers the opportunity cost of holding non-yielding assets like gold.
ADP data showed that US companies lost an average of >11,250 jobs per week through October 25th. This sign of labor market weakness has fueled speculation of additional easing; CME FedWatch now prices in a 68% chance of a 25 bps cut in December and an 80% chance in January.
Today's Fedspeak agenda is also closely watched: John Williams, Anna Paulson, Christopher Waller, Raphael Bostic, Stephen Miran, and Susan Collins are scheduled to speak. A more dovish tone could support gold, while a hawkish tone could potentially restrain it.
On the risk side, progress on the end of the US government shutdown could dampen demand for safe havens. The Senate has passed temporary funding that could potentially reopen the government until January 30th, so the return of official data and the restoration of macro clarity could test the strength of the gold rally. (asd)
Source: Newsmaker.id
