FX.co ★ Gold Hovers Near Two-Week High

Gold prices decreased to approximately $4,150 per ounce on Thursday, although they remained close to a two-week peak. This movement came as investors continued to anticipate a potential interest rate reduction by the Federal Reserve next month. Recent reports showed unexpectedly low initial jobless claims and stronger-than-anticipated durable goods orders. However, these factors did not alter the prevailing expectations for rate cuts. Market participants are currently assigning around an 80% likelihood of a 25 basis point cut at the Fed’s final meeting of the year. Adding weight to predictions of a reduction in rates, Kevin Hassett, the President’s principal economic adviser, has emerged as the primary candidate for Fed chair. He is anticipated to favor a dovish monetary policy, aligning with President Trump’s preferences. Gold is poised for a fourth consecutive monthly increase and has surged nearly 60% so far this year, setting it on course for its most significant annual performance since 1979.