Spot Gold rebounded on Wednesday after recent slide amid broader risk aversion, as market players awaited the FOMC minutes release and a delayed US employment report.
“Gold has somewhat had its momentum thwarted by the stronger USD and doubts about when the next Fed rate cut may arrive,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
“However, a bout of risk aversion in the market has kept gold in the frame for investors as a safety play, which has limited the slide.”
Investor focus now sets on the minutes from the Federal Reserve’s October meeting, which will be published later in the day, and on the September Non-Farm Payrolls report on Thursday, which may provide more insight regarding the health of the US economy.
An increasing number of Fed officials have signaled reticence on further rate cuts due to inflation concerns and indications of relative stability in the US labor market.
The Federal Reserve lowered its federal funds rate target range by 25 basis points to 3.75%-4.00% at its October meeting. But, Fed Chair Jerome Powell had said that a December rate cut was not a foregone conclusion.
Markets are now pricing in about a 49% chance of a 25 basis point Fed rate cut in December, compared to a 63% chance a week earlier.
Spot Gold was last up 0.37% on the day to trade at $4,082.36 per troy ounce.
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