Gold Gains as Soft US Data Fuels Fed Rate Cut Bets
Gold prices advanced 0.9% to $4,166.13 per ounce, marking the strongest daily gain in three weeks. The rally coincided with weakening US economic indicators—September retail sales grew at a glacial pace while Core producer inflation undershot forecasts. These signals have traders repricing December rate cut odds to 80.7%, up sharply from 42.4% last week.
The dollar’s 0.5% retreat from recent highs further supported bullion demand. Emerging market central banks continue accumulating Gold reserves, with China and Poland leading this year’s official sector purchases. Market technicians note gold’s breach of the $4,150 resistance level could signal further upside.
February gold futures climbed in lockstep, settling at $4,201.15. The delayed October data release—a casualty of Washington’s budget impasse—leaves markets parsing September metrics as the final clues before the Fed’s December decision.
