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Gold

Gold Prices Stage Partial Recovery Amid US Fed Rate Cut Uncertainty

Strategic Insights

— 1 min read

Gold prices rose by as much as 0.9% to trade near $3,967 an ounce, staging a partial recovery following a run of losses. The precious metal had fallen almost 5% over the previous four sessions, but spot gold rose 0.8% to $3,962.09 an ounce as of 9:08 am in Singapore. The Bloomberg Dollar Spot Index dipped 0.1%, while silver rose for a third day, climbing 0.8%. The US Federal Reserve's uncertain stance on rate cuts contributed to the market's volatility, with Fed Chair Jerome Powell downplaying the likelihood of a December reduction after a quarter-point cut on Wednesday.

Key Takeaways:

  • Gold prices staged a partial recovery, rising by as much as 0.9% to trade near $3,967 an ounce.
  • Spot gold rose 0.8% to $3,962.09 an ounce as of 9:08 am in Singapore.
  • The Bloomberg Dollar Spot Index dipped 0.1%, indicating a slight decline in the US dollar.
  • Silver rose for a third day, climbing 0.8%, while platinum and palladium advanced.
  • The divisions at the Fed add to challenges for investors seeking signals on the path ahead for monetary policy.
  • Higher interest-rates tend to pose a headwind for non-yielding gold, which has retreated sharply following a scorching rally.
  • Gold prices have gained about 50% this year, supported by central-bank buying and interest in debasement trade.
  • Total gold ETF holdings fell for a fifth consecutive day, the longest streak of declines since May.

Statistics:

  • Gold prices rose by 0.9% to trade near $3,967 an ounce.
  • Spot gold rose 0.8% to $3,962.09 an ounce as of 9:08 am in Singapore.
  • Silver rose 0.8% for a third consecutive day.
  • The Bloomberg Dollar Spot Index dipped 0.1%.
  • Gold prices have gained about 50% this year.
  • Total gold ETF holdings fell for a fifth consecutive day, the longest streak of declines since May.

Sources:

  • Hindustan Times, October 30, 2023.
  • Bloomberg, October 31, 2023.
  • Schroders, unnamed note from Sebastian Mullins, Head of Multi-Asset and Fixed Income.
  • Bloomberg, data compiled on total gold ETF holdings.

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