Gold prices remained stable near record levels as investors anticipated important US economic data that could provide insights into the Federal Reserve’s future monetary policy, Bloomberg reports.
The precious metal was trading around $2,620 an ounce after reaching an all-time high of $2,625.77 an ounce on Friday.
The upcoming data release includes the Fed’s preferred measure of inflation, the personal consumption expenditures (PCE) index, as well as jobless claims figures. These reports are expected to shed light on whether the Federal Reserve’s recent 50-basis-point rate cut will mark the beginning of a series of aggressive rate reductions.
Fed Governor Christopher Waller indicated on Friday that he would likely support quarter-point cuts at the upcoming policy meetings in November and December, contingent upon the economy performing as he anticipates. However, he noted that a further half-percentage-point cut could occur if the job market shows signs of weakening.
In addition to economic indicators, gold traders are closely watching rising tensions in the Middle East, particularly concerns about a potential escalation of conflict between Hezbollah and Israel. Such developments could enhance gold’s status as a safe-haven asset.
As of Monday morning in Singapore, spot gold was priced at $2,621.11 an ounce, maintaining a 1.7% increase from the previous week. The Bloomberg Dollar Spot Index remained steady, while silver, palladium, and platinum prices experienced declines.
