FX.co ★ Gold Edges Lower

Gold prices dipped to approximately $4,050 per ounce on Monday, continuing the downward trend from Friday, as investors waited for additional U.S. economic data to gain clarity on the Federal Reserve's policy trajectory. The market focus will largely be on September's retail sales and Producer Price Index (PPI) figures released on Tuesday, as well as the weekly jobless claims due on Wednesday. The anticipation of a potential rate cut in December has shifted following Fed President John Williams' recent comments supporting another reduction in the near future. Currently, the markets are indicating a roughly 70% chance of a 25 basis point cut next month, up from about 40% last Thursday after strong employment data emerged. Nevertheless, gold prices have risen approximately 54% this year, bolstered by the uncertainties in trade and geopolitics, strong central bank purchases, and enduring demand from investors seeking a safeguard against fiscal threats.