Spot Gold scaled a fresh two-week high of $4,079.15/oz. on Monday on expectations of another interest rate cut by the Federal Reserve and after a host of weak macro data raised slowdown concerns.
“Gold is catching a solid bid from traders to kick off the week, with the precious metal rising on anticipation that a rate cut could still arrive next month, even though the Fed has been downplaying the chances of it occurring,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
Private payrolls in the US rose by 42,000 in October, following 29,000 jobs cut in September. But, US employers shed jobs in professional business services (-15,000), information (-17,000) and leisure and hospitality (-6,000) for a third consecutive month in October.
In addition, US consumer sentiment was reported at its weakest level in almost 3 1/2 years in early November.
Markets are now pricing in about a 63% chance of a 25 basis point Fed rate cut in December, compared to a 67% chance a week earlier.
The ongoing US government shutdown has delayed the release of essential macro data, which complicated assessments of the US economy’s state, as investors had to rely on secondary, non-government data prints.
The US Senate over the weekend appeared set to move forward with a measure aimed to reopen the federal government and put an end to the 40-day shutdown.
Spot Gold was last up 1.91% on the day to trade at $4,077.66 per troy ounce.
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