October 10, 2024
New Delhi, India
Gold Prices
Gold prices (XAU/USD) saw a slight recovery on Thursday, snapping a six-day losing streak that pushed prices to a nearly three-week low around the $2,604 area. However, this rebound lacks strong momentum, as market participants anticipate a 25 basis points (bps) interest rate cut by the Federal Reserve (Fed) in November, which is helping the US Dollar (USD) maintain its strength.
Fed Rate Cut Expectations Weigh on Gold
Rising expectations of a Fed rate cut next month, combined with the strength of the USD, have capped further gains for the non-yielding yellow metal. Traders are cautious ahead of the release of the key US Consumer Price Index (CPI) data, which could shape market expectations regarding the Fed’s monetary policy.
Investors Await US CPI Data for Fresh Direction
Gold prices may remain under pressure until the release of the US CPI inflation report later in the day, which could provide fresh directional momentum. Additionally, developments in ongoing conflicts in the Middle East might present short-term opportunities for gold, a traditional safe-haven asset.
Also Read: USDINR Today: Rupee Weakens Amid Strong USD and Muted Market Sentiment
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