FX.co ★ Gold Near Six-Week High

On Wednesday, gold climbed to approximately $4,220 per ounce, edging closer to a six-week high. This increase is fueled by persistent expectations of further monetary policy easing by the Federal Reserve. Recent US economic indicators have pointed to a slight deceleration in activity, which has strengthened the belief that the Fed might lower interest rates in its upcoming meeting. Currently, there is an almost 90% chance that markets expect this cut to occur. Concurrently, speculation that Kevin Hassett, the White House economic adviser, could be appointed as the next Fed Chair, replacing Jerome Powell, has further cemented the dovish sentiment. Investors are now closely watching the November ADP employment report due on Wednesday and the postponed September Personal Consumption Expenditures (PCE) data, set to be released on Friday, for more insight into the Federal Reserve’s rate strategy. Meanwhile, US Treasury yields have slightly decreased following a recent rise driven by a global sell-off in government bonds.