Gold Advances as Traders Bet on December Rate Cut, Await US Data

Core Viewpoint - Gold prices are stabilizing as traders assess the likelihood of another Federal Reserve interest-rate cut before the end of the year, with current trading around $4,070 an ounce after a modest weekly loss [1]. Group 1: Gold Market Insights - Gold traded near $4,070 an ounce, experiencing a slight weekly loss, with comments from New York Fed President John Williams suggesting potential for a reduction in borrowing costs [1]. - Futures traders are pricing in a nearly 70% chance of a quarter-point rate cut next month, which typically benefits gold as it does not yield interest [3]. - The precious metal has been in a consolidation phase since reaching a record high above $4,380 an ounce in October, currently up around 55% this year due to trade and geopolitical uncertainties [4]. Group 2: Economic Indicators and Market Reactions - The US government shutdown has delayed the release of key economic data, including September retail sales and producer-price data, which are expected to provide insights into the economy's health [3]. - Ahmad Assiri from Pepperstone Group Ltd. indicated that the rate-cut path is unpredictable, suggesting that gold will likely remain around current levels, creating opportunities for two-way trades in a less volatile environment [4]. - Spot gold was reported at $4,072.55 an ounce, with other precious metals like silver edging higher, while platinum steadied and palladium declined [5].