Gold prices plunge for fourth straight day of declines as hopes for interest-rate cut fade

Core Viewpoint - Gold prices have declined to their lowest levels in over a week due to reduced expectations for an interest rate cut by the Federal Reserve in December [1][4]. Group 1: Gold Price Movement - Gold futures fell 0.3% to $4,062.20 per ounce, marking the fourth consecutive day of declines and the lowest price since November 10 [1]. - The probability of a quarter-point interest rate cut next month has decreased to 52.6%, down from 93.7% a month ago [1]. Group 2: Market Sentiment and Fed Commentary - Market participants are adjusting their expectations for US interest rate cuts following hawkish remarks from Federal Reserve officials [2]. - Fed Vice Chair Philip Jefferson emphasized the need for a cautious approach to further rate cuts, which has unsettled investors seeking lower interest rates [4][6]. Group 3: Economic Indicators and Future Outlook - The Federal Reserve officials lacked access to critical government data during the recent shutdown, which is essential for their interest rate decision-making [3]. - Upcoming releases of Fed minutes and the delayed September jobs report are anticipated to provide significant insights into the US economy's health [3]. Group 4: Gold's Performance and Influencing Factors - Despite recent declines, gold has gained over 50% this year, positioning it for its best performance since 1979, driven by factors such as inflation concerns and central bank buying [6][7]. - The US economy is showing signs of cooling, which is expected to lead to falling interest rates and a weaker US dollar, creating a favorable long-term outlook for gold [10].