FX.co ★ Gold Holds Near Three-Week Low

Gold prices steadied at approximately $3,930 per ounce on Thursday, maintaining most of their recent declines and remaining near a three-week low as traders reduced expectations for further rate cuts by the United States. Following the anticipated quarter-point cut announced on Wednesday, Federal Reserve Chair Jerome Powell minimized the probability of another reduction in December. He attributed this to differences among policymakers and limited federal data available due to the government shutdown. Currently, markets perceive less than a 70% likelihood of an additional rate cut this year, a significant drop from the near-certainty projected prior to the Federal Open Market Committee's decision. At the same time, attention remains on the US-China trade discussions, with Presidents Donald Trump and Xi Jinping anticipated to finalize a trade agreement during their meeting in South Korea. This development suggests a potential cessation of the prolonged trade conflict, thereby diminishing the appeal of safe-haven assets. Nevertheless, gold is still poised for a gain this month, having risen approximately 50% over the course of the year.