Gold Holds Steady Despite Rate Cut Buzz and Jobless Spike

Core Insights - The week was marked by significant market activity ahead of the FOMC meeting, with a focus on US inflation and labor market data [3] - The Consumer Price Index (CPI) report for August met expectations, indicating core inflation at +3.1% YoY and overall inflation at +2.9% YoY, remaining below 3% [4][5] - The CPI report supports the likelihood of an interest rate cut by the Federal Reserve in the upcoming meeting [5] Market Performance - Gold prices remained stable above $3600/oz after an initial breakout on Monday, despite various economic catalysts [6] - The CPI report's indication of steady inflation bolstered expectations for a Fed rate cut, influencing market sentiment [6] - A spike in weekly jobless claims, reaching a four-year high, added pressure on the Fed to consider action, impacting market dynamics [6] - Despite favorable conditions, gold did not experience a significant spike, raising questions about whether rate cut expectations are fully priced in [6]