FX.co ★ Gold Holds Gains After Minutes

Gold prices remained above the $4,070 threshold on Wednesday following the release of the Federal Reserve's October meeting minutes. These minutes highlighted a significant division among Fed officials. While the majority anticipate the potential need for further rate cuts in the future, many expressed doubts about a guaranteed move in December. This cautious stance reduced short-term expectations for rate cuts and dampened some momentum for gold. Consequently, gold found itself balanced between a stronger dollar and persistent demand driven by geopolitical uncertainties and its status as a safe haven. Prices stayed near recent levels instead of pushing higher. The likelihood of a December rate cut has been reduced to approximately 30% according to the CME FedWatch tool. This shift has redirected focus towards the upcoming U.S. jobs report and further communications from the Fed, which are seen as the next probable catalysts for market direction. The jobs report is anticipated to reveal modest payroll increases of around 50,000. Additionally, worries about high tech stock valuations have strained investor sentiment, enhancing gold's attractiveness as a secure investment amid ongoing weaknesses in the equity markets.