Gold Prices Stabilize Amid Mixed Expectations for U.S. Rate Cuts
Gold prices stabilized on Thursday, November 27, after touching their highest levels in about two weeks during the previous session, as investors assess the likelihood of the U.S. Federal Reserve cutting interest rates in December.
Spot gold recorded a slight decline of 0.2% to settle at $4154.09 per ounce, while December gold futures fell by 0.3% to $4151.20 per ounce.
This performance comes amid mixed messages from Federal Reserve officials. Several officials, including John Williams and Christopher Waller, hinted that a rate cut next month could be justified due to a weak labor market, which in turn has put downward pressure on Treasury yields.
Conversely, this trend still faces opposition from other officials within the Fed, who prefer to wait and halt any monetary easing until inflation clearly declines towards the target level of 2%.
On another note, Kevin Hassett, the leading candidate to succeed Jerome Powell, made a new statement saying, "Current interest rates are high and should be lowered," aligning with the views of President Donald Trump.
Market tools, such as the "Fed Watch," reflect this heated debate, as markets currently estimate an 85% chance of the Fed cutting rates in December.
In related news, silver fell by 0.9% to $52.89 per ounce. Meanwhile, platinum rose by 1.4% to $1611.04 per ounce, while palladium lost 0.9% to close at $1409.87 per ounce.
