FX.co ★ Gold Cuts Gains as Data Delays Cloud Fed Outlook

Gold prices, having retraced some earlier gains, steadied around $4,165 per ounce on Friday. Nevertheless, the precious metal is still on course for a weekly increase of approximately 4%. The market is currently dealing with the repercussions of a substantial delay in US economic data releases, a consequence of the longest government shutdown in US history. Concerns have intensified over the potential non-publication of critical reports, particularly the October Consumer Price Index (CPI) and employment statistics, should agencies be unable to complete their analyses due to disrupted data collection practices. In light of these uncertainties, investors have tempered their expectations regarding Federal Reserve policy easing this year. Currently, money markets estimate about a 50% chance of a rate cut by December. Despite these uncertainties, gold remains bolstered by continued central bank acquisitions and unwavering demand from investors seeking a hedge against fiscal risks.