Gold Hits Record $4,300, Tonight Could Be Decisive
Gold prices remained hovering near a record high of around $4,300 per ounce on Tuesday. The market appeared to be holding back its movements, as all eyes were on tonight's release of important US data.
The main trigger is the US jobs report (Nonfarm Payrolls/NFP), which will be released today. This data often determines the direction of the dollar and interest rate expectations—two factors that significantly influence gold.
In addition to the NFP, the market is also awaiting Retail Sales data and the preliminary indicator of manufacturing activity (PMI). This data package could change the market's assessment of the strength of the US economy.
Then there's another "bombshell" to watch: November's inflation data, scheduled for release on Thursday. Inflation figures are usually the Fed's primary factor in determining whether to hold or cut interest rates.
Currently, the market is pricing in a 75.6% chance that the Fed will hold interest rates at its January meeting. However, some market participants still expect two rate cuts next year—and that's usually a positive sign for gold. However, there's a factor holding back gold's further gains: hopes for a Russia-Ukraine peace deal. US President Donald Trump said on Monday that the end of the conflict is "closer than ever," and if geopolitical tensions ease, demand for safe-haven assets like gold could also decrease. (asd)
Source: Newsmaker.id
