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Gold Extends Slide as Dollar Firms and Fed Cut Odds Recede

Traders await key US data to gauge the Fed's next move.

Overview

  • Spot gold slipped 0.1% to about $4,039.19 per ounce early Tuesday, marking a fourth straight session of declines, while December futures traded near $4,038.60.
  • The retracement follows a brief uptick Monday to roughly $4,083.92 as some investors viewed prior selling as overdone.
  • Market-implied odds for a 25-basis-point rate cut next month fell to 46% from 50% earlier in the week, according to CME FedWatch.
  • Fed Vice Chair Philip Jefferson urged moving forward slowly on further rate cuts, and a firmer dollar has added pressure by raising bullion’s cost for non-dollar buyers.
  • Attention turns to this week’s US releases, including the nonfarm payrolls report, with silver, platinum and palladium showing modest, mixed moves in recent sessions.