FX.co ★ Gold Steadies Below Record High Ahead of US Jobs Data

Gold prices remained steady at approximately $4,015 per ounce on Monday, not surpassing October's peak of $4,382. This stabilization occurs as the US dollar hovers near a three-month high in anticipation of significant US private payroll data, which investors consider crucial for insights into the Federal Reserve's policy direction. Last week, the Federal Reserve implemented a rate cut, which was largely anticipated, yet Chair Jerome Powell suggested that this might be the last cut of the year. His comments were underscored by the limited availability of economic data due to the ongoing US government shutdown. Following these developments, traders reduced the likelihood of another rate cut in December, with probabilities decreasing to about 70%. Meanwhile, the demand for gold as a safe haven weakened after the United States and China reached an accord to extend the tariff truce, relax export restrictions, and reduce trade barriers. Additionally, China's recent decision to abolish a long-standing tax incentive on gold sales is likely to increase domestic prices, potentially curtailing consumer demand within one of the globe's largest gold markets.