Gold Tries to Rebound, But Powell Puts the Brakes on December
Gold prices edged up after four days of declines, but sentiment remained fragile as Fed Chairman Jerome Powell downplayed the likelihood of a December interest rate cut. At 7:02 a.m. Western Indonesian Time (WIB), spot gold was trading around $3,946/ounce, after falling 0.6% overnight. Powell's cautious tone also pushed the 10-year US Treasury yield above 4% and strengthened the dollar, a currency typically favored by gold due to its non-yielding nature.
This movement follows a sharp rally last week that briefly took prices to a record high above $4,380/ounce, but reversed as the market deemed the rally overheated and signs of progress in US-China trade relations dampened demand for hedge funds.
On the capital inflows side, support from central bank purchases remains a medium-term support, but outflows from gold ETFs in recent days have partially offset this momentum. Bloomberg data shows gold ETF holdings fell for five consecutive days through Tuesday.
Looking ahead, market participants will release the quarterly gold demand report, awaiting the World Gold Council's assessment of investor and central bank appetite following the recent price volatility. The results will provide clues as to whether the current consolidation will continue or open the door to another rally. (asd)
Source: Newsmaker.id
