Gold prices have maintained a consistent positive trend for several weeks despite a sharp drop last Friday amid speculation that the Federal Reserve (Fed) will implement an interest rate cut.
At 9.15 am, gold prices were at $4,358, up 0.05% since it opened in early trading on Tuesday in the Asian session.
The improvement in risk appetite following US President Donald Trump’s calm tone in his speech on China has been the focus of gold investors as the economic situation in the United States is limited.
The US government shutdown has entered its twentieth day and shows no signs of reopening anytime soon, stifling voices and reports from Fed officials and causing investors to turn to Trump’s comments.
This weekend, the US Bureau of Labor Statistics (BLS) will release US Consumer Price Index (CPI) data for September for market participants and Fed officials to scrutinize, so that the next monetary decision will be clearer.
Market participants have pegged the odds as high as 96% of the US central bank cutting rates by 50 basis points through 2025.
Trade talks between Washington and Beijing are set to resume in Malaysia as the November 10 deadline for a trade truce approaches.
Trump has listed key demands on China, such as stopping fentanyl and continuing soybean purchases.
