Spot Gold eased slightly on Wednesday, as the US Dollar bounced off an over one-week low, while investors likely took profits after recent rally.
This week, the US Senate passed a deal that would restore federal funding and put an end to the longest-ever government shutdown. The latter 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.
Yet, the bill still needs to clear the US House of Representatives before being sent to President Trump.
A government reopening will provide more clarity on the US economic outlook and the Federal Reserve’s policy path.
Markets are now pricing in about a 64% chance of a 25 basis point Fed rate cut in December, compared to a 62% chance a week earlier.
The US Dollar Index was last up 0.10% to 99.529. A firmer dollar makes dollar-priced Gold less appealing to international investors holding other currencies.
Spot Gold was last down 0.22% on the day to trade at $4,117.42 per troy ounce.
“It appears that ‘normal service has resumed’ for gold, with the precious metal trading back above $4,100 while eyeing off targets further north should U.S. macro data continue to be supportive for additional monetary policy easing,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
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