FX.co ★ Gold Starts the Week Strong

Gold prices climbed to approximately $4,120 per ounce on Monday following a slight decline the previous week. Investors are now turning their attention to the upcoming US retail sales and Producer Price Index (PPI) data, expected on Tuesday, and the weekly jobless claims report set for Wednesday. Remarks from New York Federal Reserve President John Williams and Fed Governor Christopher Waller have influenced market expectations, increasing the likelihood of a 25-basis-point interest rate cut in December to nearly 79%, as per CME FedWatch. This shift in expectations has led to lower Treasury yields and a softer dollar, thereby decreasing the opportunity cost of holding gold. Such factors have bolstered gold prices, despite a fresh surge in equity markets driven by artificial intelligence, which attracted some risk capital into technology stocks. Additionally, ongoing central bank acquisitions of gold, along with persistent geopolitical and fiscal uncertainties, have continued to fuel demand. These dynamics have maintained a solid technical support level for the precious metal, which has seen an approximately 55% increase in value so far this year.