Gold Awaits Its Signal From Here!
Gold prices rose to $4,077 at the start of the Asian session on Monday (November 24th), supported by growing expectations of a Fed interest rate cut next month. Dovish comments from New York Fed President John Williams were the main driver of this positive sentiment.
Williams emphasized that the Fed could still cut interest rates in the near future without disrupting its inflation target. The market now estimates the probability of a December rate cut has jumped to around 74%, from just 40% last week. Lower interest rate expectations typically benefit gold because they lower the opportunity cost of holding non-yielding assets.
However, not all Fed officials are on the same page. Lorie Logan and Susan Collins remain hawkish and believe interest rates should be kept unchanged for longer. These conflicting positions have made the market cautious ahead of key US data releases.
The main focus now turns to US PPI and retail sales data due on Tuesday. Consensus estimates PPI rose 0.3% month-on-month and retail sales increased 0.4%. Hotter-than-expected data could dampen expectations of a rate cut.
If inflation rises, the dollar could potentially strengthen, putting downward pressure on gold prices. For now, XAU/USD remains stable in positive territory as the market awaits further clues from data and comments from Fed officials. (Asd)
Source: Newsmaker.id
