FX.co ★ Gold Hits Two-Week High on Rate Cut Bets

On Monday, gold experienced a 2% increase, reaching $4,080 per ounce, approaching its highest levels since October 24. This rise is attributed to increasing speculations regarding a potential Federal Reserve interest rate cut in December, despite officials’ attempts to temper such expectations. Recent statistics revealed a significant decline in US consumer sentiment in November, marking its second-lowest level ever recorded, indicative of growing apprehension about the ongoing government shutdown, which stands as the longest in US history. Concurrently, the economy observed job losses in October, primarily in the government and retail sectors, alongside a surge in layoffs reaching a 20-year high. Market predictions indicate nearly a 70% chance of a rate reduction in December. Meanwhile, in Washington, the US Senate advanced the initial phase of legislation aimed at concluding the shutdown, achieving the necessary 60 votes by a narrow margin. Notably, eight Democratic senators crossed party lines to support the bill, which secures funding for the Departments of Agriculture, Veterans Affairs, Congress, among several other agencies.