Gold prices rose sharply in late trading on Monday as markets saw optimism that the Federal Reserve (Fed) will cut rates at its December meeting amid a slew of US economic data releases.
At 9.10am, gold was at $4,127, down 0.16% since it opened early Tuesday in Asian trading.
Fed Governor Christopher Waller backed a December cut, echoing comments from New York Fed President John Williams, who said a December cut was likely due to a weak labor market.
While the US dollar remained firm throughout the week, gold performed well, driven by a drop in US Treasury yields on speculation of a further rate cut environment.
As a result, market participants see a 76% chance of a December rate cut, a sharp jump from 42% a week ago.
This week, the market will be assessing the ADP Employment, Producer Price Index and Retail Sales reports on Tuesday. Coming up on Wednesday, Durable Goods Orders and Initial Jobless Claims could be key indicators for the Fed ahead of the FOMC meeting.
Gold prices have so far ignored developments in the geopolitical arena as the US and Ukraine work on a plan to end the war with Russia.
