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Gold Extends Slide as Rate‑Cut Bets Recede Ahead of US Data

Rate‑cut odds slipping to near 42% have cooled gold as markets await the post‑shutdown data run.

Overview

  • Spot gold eased to about $4,039 per ounce on Tuesday, marking a fourth straight decline as the dollar held firm.
  • Traders now price roughly a 42%–46% chance of a December Fed cut after hawkish signals from officials, including Vice Chair Philip Jefferson.
  • A backlog of delayed releases keeps visibility low, with nonfarm payrolls due Thursday alongside Fed minutes and a closely watched speech by Chair Jerome Powell.
  • Despite the pullback, bullion remains up about 55% year to date and on pace for its strongest annual performance since 1979.
  • Structural support persists from elevated central‑bank buying and recent ETF inflows, though physical demand in Asia has softened and Indian dealers are offering discounts.