Gold prices receded under the $4,000 per ounce threshold as the U.S. dollar firmed and expectations of another Federal Reserve rate cut in December diminished.
Spot gold fell around 0.4% to nearly $3,983.87 per ounce, while December futures edged down about 0.5% to roughly $3,994.10. The dollar rose to a three-month high versus the euro, amid uncertainty about the Fed’s next move after Chair Jerome Powell noted another cut this year is “not a foregone conclusion”.
Market participants now estimate around a 65% chance of a December rate cut, down from over 90% previously. Adding to bullion’s pressure, China ended a long-standing tax exemption for certain gold retailers — a move that may dampen demand in the world’s largest consumer market.
Though gold continues to reflect strong year-to-date gains (having risen about 50% or more), it remains vulnerable near the current plateau given rising yields, the firm dollar and subdued safe-haven demand.
Investors are now focused on upcoming U.S. data — including ADP employment and ISM PMI readings — for clues about monetary policy direction and their implications for bullion.
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