"Gold edged higher on Thursday but continued to trade horizontally overall as it remained relatively stable for several trading sessions after its selloff last month. The metal could continue to find support in the ongoing geopolitical risks in the Middle East and Eastern Europe. The lengthy US government shutdown could also continue to weigh on sentiment and drive demand for the safe-haven asset as its impact on the economy deepens."
"Private payrolls rose by 42,000 in October, beating forecasts of a 25,000 increase, while the ISM services PMI unexpectedly climbed to an eight-month high. The figures suggested that the US economy remains resilient despite the government shutdown, tempering expectations for additional Fed rate cuts next year. Still, market participants continue to price a 25 basis point rate cut in December, painting a potentially supportive scenario for the precious metal."
Gold edged higher but traded sideways overall following a selloff last month, remaining relatively stable across several sessions. Ongoing geopolitical risks in the Middle East and Eastern Europe could provide continued support for the metal. The prolonged US government shutdown may weigh on sentiment and increase demand for the safe-haven asset as economic impacts deepen. Stronger-than-expected US economic readings have reduced expectations for Fed policy easing, creating downside risk for gold. Private payrolls and a rising ISM services PMI signal US resilience, yet markets still price a 25 basis point cut in December, which could support prices.
Read at London Business News | Londonlovesbusiness.com
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