FX.co ★ Gold Hovers at Three-Week High

Gold prices steadied around $4,180 per ounce on Thursday, reaching a three-week high, as uncertainties surrounding the US economic outlook combined with increasing investor confidence fueled expectations of further Federal Reserve easing. With the end of the government shutdown in sight, following the House's approval of a temporary funding measure pending President Trump’s endorsement, attention shifts to economic indicators. Nonetheless, the White House cautions that the release of October’s official jobs and inflation data might be postponed—key metrics crucial for assessing the US economy's health. Concurrently, private sector labor reports reveal job cuts by US companies in recent weeks, highlighting ongoing labor market weaknesses and amplifying speculation over potential interest rate cuts. Markets currently estimate a 65% chance of a 25 basis point cut next month. Gold has appreciated nearly 5% this week, spurred in part by heightened expectations of the Fed's leeway for further rate reductions.