Investor Uncertainty Keeps Gold Price Still Ahead of Fed Minutes

8 Oct 2024 , 10:47 AM

Gold prices were unchanged in early Asian hours on Tuesday as market investors awaited the minutes of the Federal Reserve’s most recent meeting and additional economic data to provide more clarity on policy easing this year.

The spot gold price remained barely changed at $2,643.68 per ounce. United States gold futures lost 0.1% to $2,662.90.

Markets are waiting for the minutes of the Fed’s latest policy meeting, which are due on Wednesday, followed by the U.S. Consumer Price Index (CPI) report on Thursday and the Producer Price Index (PPI) data on Friday. This week also sees a spate of Fed officials speaking.

Gold is perceived as a buffer against geopolitical instability and tends thrive in a low interest rate environment.

Following Friday’s stronger-than-expected jobs report, traders reduced their expectations for a 50 basis-point rate decrease in November. According to the CME’s FedWatch tool, there is currently an 86% chance of a 25 basis point rate cut and a 14% chance that the Fed will not lower rates at all.

According to the study, job increases in the United States climbed by the highest in six months in September, while the unemployment rate decreased to 4.1%, indicating a healthy economy.

St. Louis Fed President Alberto Musalem said he supports more rate decreases as the economy continues to grow, but he also noted that the central bank should be cautious and avoid over-easing monetary policy.

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