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Gold Holds Near $4,130 as Markets Price In December Fed Cut

Traders are watching a backlog of U.S. reports this week to test the now 81% probability of a near‑term rate reduction.

Overview

  • Spot gold hovered around $4,13x per ounce after a 1.8% jump on Monday, with gains constrained by a firm dollar near six‑month highs.
  • Rate‑cut odds for December have leapt from about 40% last week to 72%–81% after dovish remarks from New York Fed President John Williams and Governor Christopher Waller.
  • Indian prices tracked the move, with MCX December futures around Rs 1.25 lakh per 10 grams and major city spot rates clustered near Rs 1.24–1.25 lakh.
  • Markets expect direction from delayed U.S. releases including retail sales, PPI, GDP and jobless claims, which were pushed into this week by a government shutdown.
  • Underlying support persists from sustained central‑bank buying and ETF inflows, including a 12th straight month of additions by the PBoC, while improved Ukraine ceasefire talk has trimmed some safe‑haven bid.