FX.co ★ Gold Holds Gain Amid Fed Rate Cut Hopes

Gold prices stabilized around $4,130 per ounce on Tuesday, following a near 2% increase on Monday. This rise was fueled by heightened expectations of a potential US interest rate cut next month. The increase in anticipation came after dovish remarks from Federal Reserve officials. On Monday, Fed Governor Christopher Waller reaffirmed his backing for a December rate cut, pointing to ongoing weakness in the US labor market. Similarly, last Friday, New York Fed President John Williams indicated that a rate reduction in the near future remains a possibility. The probability of a 25 basis points cut in December has surged to 81%, a significant jump from approximately 40% a week ago. Investor attention is now directed towards upcoming economic data releases, including September's retail sales and Producer Price Index (PPI) set for later today, and the weekly jobless claims report on Wednesday. These reports are anticipated to provide further insights into the US economy's condition and guide the Federal Reserve's policy trajectory.