You have read about the various factions forming at the Federal Reserve around the idea to cut rates or hold them steady in December. Noel John reports at Reuters:
Gold prices held steady on Monday, as growing expectations of a Federal Reserve rate cut next month helped offset pressure from a firm U.S. dollar.
Spot gold was up 0.1% at $4,069.10 per ounce, as of 1153 GMT. U.S. gold futures for December delivery fell 0.3% to $4,065.40 per ounce.
The dollar held near the six-month high hit on Friday, making greenback-priced gold more expensive for holders of other currencies.
“Gold steadied as investors evaluated the prospect of another Fed rate cut after New York Fed President John Williams signalled there may be room to lower borrowing costs amid a softening labour market, even as other officials struck a more cautious tone,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Williams had said on Friday U.S. interest rates could fall without putting the Fed’s inflation goal at risk, while helping guard against a slide in the job market.
Bets of a rate cut next month had surged to 75% from 40% on Friday, following dovish comments from Williams, the CME FedWatch tool showed.
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