FX.co ★ Gold Rises as US Rate Cut Bets Grow

Gold prices surged to approximately $4,000 per ounce on Friday, driven by lackluster labor data which bolstered the expectation of an imminent rate cut by the Federal Reserve. In October, Challenger job cuts saw a threefold increase, marking the most significant rise in over twenty years, as businesses pointed to diminishing consumer demand. This data subdued the optimism sparked by the recovery in ADP payrolls, keeping concerns about the US labor market high in the face of restricted government data, thereby increasing reliance on private reports. The markets have increased their anticipation of a rate cut in December, now estimating a 69% likelihood of a quarter-point reduction, up from 60% the previous day. A weakened US dollar has also contributed to gold's appeal, making it more affordable for international buyers, while ongoing economic uncertainty linked to the extended government shutdown has bolstered its status as a safe-haven asset. Despite these developments, gold is on track for a steady performance over the week.