FX.co ★ Gold Drops Amid Reduced Fed Rate-Cut Bets

Gold prices dropped to approximately $4,020 per ounce on Tuesday, marking the fourth consecutive session of decline. This trend is attributed to diminishing expectations of a US interest rate cut, as investors anticipate a series of US economic data releases this week for further insights into the Federal Reserve's policy direction. The absence of US data in the past six weeks, alongside hawkish comments from several Fed officials last week, has weakened hopes for a rate cut in December. On Monday, Fed Vice Chair Philip Jefferson observed that the downside risks to employment have increased compared to the upside risks to inflation, suggesting that the Fed should proceed "slowly" with additional rate reductions. Investors will be paying close attention to Thursday's September jobs report for further understanding of the US economy's condition, while the release of the Fed's recent meeting minutes on Wednesday will offer more guidance on rate decisions. Presently, markets reflect a 43% likelihood of a 25-basis-point rate cut in December, a decrease from over 60% earlier this month.