Gold Steadies as Dollar Climbs on Rising Bets of Fed Rate Hold

Core Insights - Gold prices have steadied after earlier gains as the dollar strengthened, with traders anticipating that the Federal Reserve will maintain interest rates in the upcoming month [1][2] - The dollar's strength surged after swap traders eliminated expectations for a rate cut in December, following the cancellation of the October employment report, which is crucial for Fed officials [2] - Gold has shown a strong correlation with equities, particularly with AI and technology stocks, reaching a correlation coefficient of 0.9, indicating a near-perfect linear relationship [4] Market Performance - Gold has appreciated approximately 55% this year, positioning it for its best performance since 1979, despite a recent pullback from record highs [5] - As of 4:24 p.m. in New York, gold was priced at $4,074.55 per ounce, reflecting a 0.2% increase after an earlier rise of 1.6% [5] - The Bloomberg Dollar Spot Index increased by 0.5%, while silver and platinum prices rose, and palladium experienced a decline [5] Investor Sentiment - Investors are concerned about stock valuations related to the AI boom, particularly ahead of earnings reports from major companies like Nvidia Corp [3] - There is anticipation for a range of economic data to be released following the reopening of the US government [4]