Gold slipped amid dwindling expectations that the Federal Reserve will cut interest rates until a backlog of data provides a clearer picture of the world’s biggest economy. A faction of Fed policymakers has stepped up warnings that inflation progress could slow or stall, casting doubt over the prospects for another rate cut in December. Meanwhile, Fed Governor Christopher Waller repeated his view that the central bank should again lower interest rates when policymakers meet next month citing a weak labor ...

Gold Price Outlook - Gold prices are rallying due to expectations of US Federal Reserve rate cuts and increased gold buying from China [5][6] - Spot gold was trading at $4,096 with a daily gain of 2.34%, while MCX Gold December contract was up 2.07% at Rs 123,707 [5] - Analysts recommend buying the dip rather than chasing the rally, with short-term resistance expected around $4,160 [8][9] US Economic Context - The ongoing US government shutdown is expected to end soon, which has boosted risk appetite among investors [5][8] - Federal Reserve officials have differing views on interest rates, with some urging caution on further cuts due to potential inflation pressures [5][7] - The US Dollar Index was at 99.72, up 0.15% for the day, while US yields showed slight increases [5][7] China's Gold Market - China's gold consumption dropped 7.95% year-on-year to 682.73 tons in the January-September period [6] - The People's Bank of China has been buying gold for the 12th consecutive month, with official reserves increasing to 74.09 million ounces [6][7] - Domestic gold ETF holdings in China rose significantly, indicating strong local demand despite the overall consumption decline [7] Market Dynamics - Total known global gold ETF holdings increased to 97.24 million ounces, up 17.36% this year, although they have seen a decline over the past three weeks [7] - COMEX gold eligible inventory is at its lowest level since April, indicating tighter supply conditions [7] - Silver prices also surged, with MCX Silver December contract rising to Rs 153,650, suggesting strong performance in precious metals [8]