#fed-rate-cut

#fed-rate-cut

Gold rose on Wednesday, snapping a three-day losing streak as investors bought the dip ahead of the Federal Reserve's policy announcement later in the day. After briefly touching USD 3,885 on Tuesday, its lowest level in nearly a month, bullion rebounded sharply and regained the USD 4,000 threshold, as traders positioned for the widely expected 25-basis-point rate cut. Market participants will focus on Fed Chair Jerome Powell's guidance regarding the pace of additional easing, with another reduction in December already priced in.

Wall Street expects the Fed to cut rates by 0.25% next week, though some are speculating Jerome Powell could deliver a "jumbo" 0.5% move, given how weak recent labor market data has been. Global markets and U.S. S&P 500 futures rose on expectations of cheaper money, but there are still two more rounds of inflation data prior to the Fed's call.

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