PT Solid Gold Berjangka | Gold Steadies as Markets Weigh Rate-Cut Outlook After Jobs Data
GOLD EMAS SOLID GROUP, SG BERJANGKA, PT SGB
Solid Gold Berjangka | Gold steadied — after tumbling almost 3% over the previous two sessions — as investors weighed the interest-rate outlook following data showing a slowdown in the US labor market.
Treasury yields fell after a report Tuesday showed US job openings dropped in October to the lowest level since March 2021, helping to support market consensus for monetary easing by the Federal Reserve next year.
Investors are watching the inflation outlook carefully. Gold surged to a record high on Monday, before making a rapid retreat on concerns that bets for aggressive Fed rate cuts have been overdone. Lower rates are typically positive for bullion, which doesn’t yield any interest.
The swaps market is pricing in a more than 60% chance of the Fed lowering borrowing costs in March. Investors will be monitoring the payrolls report for November later this week for clues to the central bank’s next steps.
Commonwealth Bank of Australia analyst Vivek Dhar said in a note that he expects dollar strength over time, on forecasts for a mild US recession, which would weigh on gold.
Spot gold rose 0.1% to $2,021 an ounce as of 9:18 a.m. in Singapore, after dropping more than 2% in the previous two sessions. The Bloomberg Dollar Spot Index was flat. Silver, platinum and palladium all climbed.
Source : Bloomberg