Gold rebounds as fresh Fed signals revive December easing bets
Gold (XAU/USD) pares some of its intraday losses on Friday after fresh comments from Federal Reserve (Fed) officials revive near-term rate-cut expectations. New York Fed President John Williams said he still sees room for a near-term cut, helping the metal recover from an earlier slide.
At the time of writing, XAU/USD is trading around $4,067, after bouncing from an intraday low near $4,022, though it remains vulnerable as the metal continues to oscillate within the range established earlier this week.
Markets had been dialing back expectations for a December rate cut, with most Fed officials striking a noticeably cautious tone in recent weeks. Policymakers have repeatedly warned that inflation remains sticky and that the labour market, while cooling, is still resilient enough to justify a more patient approach.
Against this backdrop, markets now see a 70% chance of a December rate cut, a sharp jump from around 31% earlier in the day. Lower interest rates typically boost demand for non-yielding assets such as Gold.
Source: FXstreet.com
