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Gold Slips as Dollar Firms on Fewer Fed Cut Bets

Reduced bets on a December rate cut after Powell’s cautious tone lifted the dollar to near a three-month high.

Overview

  • Spot gold traded near $4,006 and December futures around $4,018 per ounce early Friday, leaving bullion on track for a third straight monthly gain.
  • Market odds of a December 25-basis-point cut fell to 74.8% from 91.1% a week earlier, according to CME FedWatch.
  • The Federal Reserve lowered rates by 25 basis points this week to 3.75%–4.00%, and Chair Jerome Powell signaled that another move in December is not assured.
  • Analysts said comments about a tariff-trimming understanding between President Trump and President Xi reduced safe-haven interest in gold.
  • In India, MCX December gold futures fell by Rs 218 to Rs 1,21,290 per 10 grams as domestic prices followed global cues.