Gold stabilizes amid expectations of interest rate cuts

Gold prices stabilized today, as lower-than-expected US retail sales data strengthened investors’ hopes that the Federal Reserve (the US central bank) would cut interest rates in December.
Gold in spot transactions fell 0.2 percent to $4,130.85 per ounce.
The precious metal recorded its highest level since November 14 earlier in the session, and jumped by about two percent yesterday, after a number of policymakers at the US Central Bank indicated their support for a third cut in interest rates during the current year.
US gold futures for December delivery rose 0.8 percent to $4,127.40 an ounce.
Retail sales rose less than expected in September, breaking a series of recent strong gains.
Meanwhile, data showed the producer price index in the United States rose 2.7 percent during the 12 months through September, after rising by the same percentage in August.
The release of the report was delayed due to the government closure that lasted 43 days.
Data from the CME Group’s Fed Watch tool indicate that investors now expect 85 percent to cut interest rates in December, compared to 30 percent last week, and 64 percent in January.
Gold, which does not generate a return, usually tends to rise in light of low interest rates.
As for other precious metals, silver rose in spot transactions by 0.1 to $51.41 per ounce, platinum rose 0.3 percent to record $1,548.80, while palladium fell 0.2 percent to $1,392.79.