Gold prices remained flat on Tuesday as investors awaited new signals from the Federal Reserve regarding its upcoming interest rate decisions, which could provide further direction for the precious metal.
Key Market Fundamentals:
- Spot gold was unchanged at $2,648.89 per ounce as of 0022 GMT, while U.S. gold futures held steady at $2,665.50.
- Fed Governor Christopher Waller expressed caution regarding upcoming interest rate cuts, noting the current stability of the economy.
- Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, suggested that additional rate cuts are likely as the central bank approaches its 2% inflation target.
- Market expectations for a 25-basis-point reduction at the Fed’s November meeting stood at 86.5%, per the CME Group’s FedWatch tool. Lower interest rates tend to enhance gold’s appeal as it offers no yield.
- Traders are closely monitoring U.S. retail sales, industrial production, and weekly jobless claims data expected later this week for further guidance.
- Central banks continue to be significant buyers of gold to diversify reserves, as highlighted at the London Bullion Market Association’s annual conference.
- On the geopolitical front, Israel intensified its military actions against Hezbollah militants in Lebanon, adding uncertainty to global markets.
- In other metals, spot silver remained flat at $31.19 per ounce, platinum was steady at $992.97, and palladium dipped 0.3% to $1,026.43.
- China’s September export growth slowed significantly, while imports also decelerated, missing forecasts and reflecting continued weakness in demand.
