Gold is showing signs of hesitation, slipping slightly on Monday as traders try to figure out if the Federal Reserve will cut rates before year-end.
The metal was down 0.3% to $4,051.69 an ounce as of 12:03 p.m. in Singapore, after logging a modest weekly loss last week.
After a choppy Friday session, gold trimmed its losses late in the day following comments from John Williams, the New York Fed President, who said a rate cut could be on the table “soon.”
Even with that signal, prices closed lower and have stayed soft into Monday.
Right now, the market is stuck waiting, U.S. government shutdowns have delayed critical economic data, so traders are turning to upcoming September retail sales and PPI (out Tuesday) and jobless claims (Wednesday) for clues.
According to futures pricing, the probability of a quarter-point cut in December is hovering just above 60%, and that’s what’s giving gold some underlying support.
Remember, lower rates tend to help bullion since it doesn’t yield interest, making it more attractive when yields fall.
Despite today’s dip, gold’s broader trend is still bullish. The metal surged past $4,380 an ounce back on October 20, and it’s up 55% year-to-date, driven by global trade fears, war risk, and investor panic over government deficits.
Silver held steady, while platinum and palladium inched up, and the Bloomberg Dollar Spot Index barely moved.