Is Gold Losing Momentum After a Record Run as US Data Looms?
Source: Kapitales Research
Highlights:
Gold prices slipped as investors turned cautious ahead of key US jobs and inflation data, with spot gold at US$4,289.17 an ounce at the time of writing.
Markets are pricing in a 76% chance of a 25-basis-point US rate cut in January, keeping interest rate expectations central to gold’s outlook.
Other precious metals were mixed, with silver pulling back from record highs while platinum and palladium edged higher.
Gold Pauses Ahead of Key Economic Signals
Gold prices edged lower as investors grew cautious ahead of crucial US economic data that could shape interest rate expectations for the year ahead. At the time of writing, spot gold was trading 0.3 per cent lower at US$4,289.17 an ounce, while US gold futures were down 0.5 per cent at US$4,315.80.
The pullback comes after an extraordinary rally that has seen bullion surge about 64 per cent so far this year, breaking multiple record highs along the way.
Markets Wait on Jobs and Inflation Clues
The near-term direction for gold is now closely tied to upcoming US employment and inflation figures. Market participants are closely monitoring the combined US employment reports for October and November, as well as weekly jobless claims and the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, all scheduled for release later this week.
At the time of writing, markets were assigning a 76 per cent probability to a 25-basis-point interest rate cut by the US Federal Reserve in January, with some investors anticipating as many as two cuts next year. However, uncertainty remains after a 43-day government shutdown disrupted data collection, leaving gaps in recent labour market indicators.
Can Gold Break Higher From Here?
Analysts say gold is testing a critical level. Ilya Spivak, head of global macro at Tastylive, noted the market is hovering near previous highs around US$4,380, raising the question of whether there is enough conviction to push prices higher or if momentum may start to fade. Federal Reserve officials have also influenced sentiment. Fed Governor Stephen Miran recently said inflation running above target does not fully reflect underlying supply and demand pressures, suggesting price growth is closer to the central bank’s 2 per cent goal than headline numbers imply.
Other Precious Metals Mixed
Elsewhere, silver fell 1.7 per cent to US$62.88 an ounce after hitting a record high last week, though analysts say strong industrial demand continues to support the metal. Platinum gained 1.7 per cent to US$1,812.80, while palladium rose 0.6 per cent to US$1,579.44.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Is Gold Losing Momentum After a Record Run as US Data Looms?
Highlights:
Gold Pauses Ahead of Key Economic Signals
Gold prices edged lower as investors grew cautious ahead of crucial US economic data that could shape interest rate expectations for the year ahead. At the time of writing, spot gold was trading 0.3 per cent lower at US$4,289.17 an ounce, while US gold futures were down 0.5 per cent at US$4,315.80.
The pullback comes after an extraordinary rally that has seen bullion surge about 64 per cent so far this year, breaking multiple record highs along the way.
Markets Wait on Jobs and Inflation Clues
The near-term direction for gold is now closely tied to upcoming US employment and inflation figures. Market participants are closely monitoring the combined US employment reports for October and November, as well as weekly jobless claims and the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, all scheduled for release later this week.
At the time of writing, markets were assigning a 76 per cent probability to a 25-basis-point interest rate cut by the US Federal Reserve in January, with some investors anticipating as many as two cuts next year. However, uncertainty remains after a 43-day government shutdown disrupted data collection, leaving gaps in recent labour market indicators.
Can Gold Break Higher From Here?
Analysts say gold is testing a critical level. Ilya Spivak, head of global macro at Tastylive, noted the market is hovering near previous highs around US$4,380, raising the question of whether there is enough conviction to push prices higher or if momentum may start to fade. Federal Reserve officials have also influenced sentiment. Fed Governor Stephen Miran recently said inflation running above target does not fully reflect underlying supply and demand pressures, suggesting price growth is closer to the central bank’s 2 per cent goal than headline numbers imply.
Other Precious Metals Mixed
Elsewhere, silver fell 1.7 per cent to US$62.88 an ounce after hitting a record high last week, though analysts say strong industrial demand continues to support the metal. Platinum gained 1.7 per cent to US$1,812.80, while palladium rose 0.6 per cent to US$1,579.44.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au