Gold prices failed to rebound during the opening week as market participants expected the Federal Reserve (Fed) to keep rates unchanged at its December meeting and awaited the release of key US economic data after weeks of delay.
At 9.10 am, gold prices were at $4,042, down 0.10% since opening early Tuesday in Asian trading.
The market focus this week is more on market sentiment in the United States, especially on the tone of Fed officials, which is a reflection of the December meeting rate decision and the release of important economic data.
Fed Vice Chairman Philip Jefferson said that the risk of an increase in inflation is likely to be on the downside, contrary to the downside risk in the labor market.
He said that companies have been less active in laying off and adding jobs due to the current relatively tight monetary policy.
Hawkish signals have dampened expectations of a rate cut at the December meeting, with the CME FedWatch Tool showing only a 43% chance of a 25 basis point cut and a 57% chance of rates being held.
