Gold extended its rally on Thursday to trade above USD 4,200 per ounce, supported by expectations of Federal Reserve rate cuts and persistent geopolitical tensions in the Middle East and Eastern Europe.
The metal was also underpinned by expectations that the upcoming economic data could reinforce the case for further monetary easing.
Markets brace for the release of the previous sets of data on the job market that were left unpublished due to the government shutdown.
President Donald Trump on Wednesday signed legislation ending the record-long shutdown, temporarily funding operations through January 30. Market participants expect the Labour Department to prioritize the publication of November figures to guide policymakers ahead of December’s Fed meeting.
Early in the week, private reports showed weakening labour conditions, adding to dovish sentiment. Markets now assign a 55% probability of a 25-basis-point rate cut next month.
At the same time, heightened tensions in the Middle East and Eastern Europe continue to support gold’s demand, painting a bullish short-term scenario for the commodity.
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