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Gold prices pull back further from record highs; Fed cuts in focus By Investing.com

by News
December 6, 2023
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© Reuters.

Investing.com– Gold prices moved little in Asian trade on Wednesday after falling sharply from record highs this week, with traders now seeking more cues on when the Federal Reserve will begin trimming interest rates.

A softer-than-expected reading for October pushed up some hopes over a cooling labor market. But focus remained squarely on an upcoming reading for November, due this Friday.

The yellow metal had started the week at record highs of over $2,100 an ounce, boosted by seemingly less hawkish comments from Fed Chair Jerome Powell, as well as increased safe haven demand following a spike in Middle East tensions. 

But it had then retreated sharply from the record peaks, as uncertainty over the Fed helped the dollar recover some lost ground. Gold prices were still trading well above the $2,000 an ounce level.

rose 0.1% to $2,021.61 an ounce, while expiring February rose 0.1% to $2,039.00 an ounce by 00:08 ET (05:08 GMT). 

Markets uncertain over Fed rate cuts 

While investors were convinced that the Fed will raise interest rates no further, they remained uncertain over just when the central bank planned to begin trimming rates.

show traders…

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