Spot Gold eased slightly on Thursday on likely profit taking after the yellow metal reached a two-week high of $4,173.50/oz. in the prior trading session.
Market participants weighed the possibility of an interest rate cut by the Federal Reserve next month amid contrasting signals from Fed officials.
“What they’re looking to do is take profits (after Wednesday’s climb) … The Fed isn’t clear of what they’re going to do next, so gold is just consolidating,” GoldSilver Central MD Brian Lan was quoted as saying by Reuters.
Fed Governor Christopher Waller said on Monday that the US job market was weak enough to warrant another 25 basis point rate cut in December.
And, New York Fed President John Williams said last week that a near-term rate cut remained possible, with labor market weakness posing a higher risk than elevated inflation.
In contrast, several regional Fed presidents have supported a pause in monetary easing until inflation moves toward the 2% target in a more convincing manner.
Markets are now pricing in about an 85% chance of a 25 basis point Fed rate cut in December, compared to a 39% chance a week earlier.
Spot Gold was last down 0.25% on the day to trade at $4,153.34 per troy ounce.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
