Welcome to Extreme Investor Network, where we provide unique and valuable insights into the stock market, trading, and Wall Street. Today, we bring you fresh insights from Federal Reserve policymakers, with Fed Governor Adriana Kugler noting the resilience of the U.S. labor market despite some cooling. The Fed’s aim to prevent a sharp slowdown in employment is crucial to maintaining growth expectations.
Market participants are now adjusting their expectations for the Fed’s upcoming November meeting, as the CME FedWatch tool indicates a shift away from pricing in a 50-basis-point rate cut towards a 25-basis-point reduction.
Geopolitical tensions, especially in the Middle East, continue to impact gold prices as safe-haven demand remains strong. Recent events, such as Israel’s expansion of ground operations into southwest Lebanon, have fueled uncertainty in the market, driving investors towards gold as a form of protection against potential global disruptions.
In China, however, gold demand remains subdued, with the country’s central bank refraining from increasing its gold reserves for the fifth consecutive month. This, along with Shanghai gold prices trading at a discount compared to London benchmarks, indicates weak physical demand in the world’s largest gold-consuming market. Despite reports of increased consumer buying, post-Golden Week holiday sessions in China saw gold prices register their worst performance since 2017.
Looking ahead, the near-term outlook for gold remains uncertain but slightly bullish as long as prices hold above $2616.25. A breakout above $2685.64 could potentially spark further gains, especially if the U.S. Dollar weakens and Treasury yields continue to decline.
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