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Gold Holds Near $4,000 as Markets Weigh Rate-Cut Bets and Fed Caution

Soft private job-cut readings during the shutdown have lifted rate-cut expectations that support bullion.

Overview

  • Gold is little changed near $4,000 an ounce and has posted a third straight weekly loss even as it remains on track for its best year since 1979.
  • A Challenger report showed the most October job cuts in more than two decades, reinforcing expectations for further Federal Reserve easing and safe-haven demand.
  • Chicago Fed President Austan Goolsbee said the lack of official inflation data during the shutdown makes him more uneasy about continuing rate cuts, and a firm dollar has capped rallies.
  • In India, MCX December futures rose Rs 520 to Rs 1,21,133 per 10 grams while Delhi spot prices fell Rs 100 to Rs 1,24,600, and Pakistan’s reference rates were unchanged.
  • Underlying support from central-bank purchases and ETF inflows persists, though analysts are split on the path ahead and China’s VAT adjustments are seen cooling retail demand.