Gold News: Gold Price Surges on Powell Investigation and Iran Tensions

Group 1: Dollar and Gold Market - A sharp decline in the U.S. Dollar is contributing to a rally in gold prices, with the dollar experiencing its largest drop in three weeks due to escalating tensions between the Federal Reserve and the Trump administration [1] - The political risk surrounding the Fed's independence is threatening stability in both the Treasury market and the dollar [1] Group 2: Fed Rate Cut Expectations - Traders are now betting on a 95% chance that the Fed will keep interest rates unchanged at its January meeting, an increase from 86% prior to the jobs report [3] - Goldman Sachs and Barclays have revised their forecasts, now expecting a 25 basis point reduction in September and December, following a cut in June [4] - Morgan Stanley has also adjusted its predictions, moving expected rate cuts from January and April to June and September [4] Group 3: Labor Market Insights - The state of the labor market is a critical factor influencing Fed rate cut timing, with Goldman Sachs suggesting that stabilization in the labor market could lead the FOMC to shift to normalization mode [5] - Bank of America posits that the labor market may be weakening more rapidly than the Fed acknowledges, which could lead to earlier or more frequent cuts than currently indicated [5] - Both Goldman and Bank of America agree that the labor market is the key driver for Fed decisions, but they differ in their outlook on its stability [5]