Gold prices drop amid waning rate cut bets.
Gold prices fell in Asian trade on Tuesday, extending recent losses as waning confidence in a December interest rate cut by the Federal Reserve supported the dollar and pressured non-yielding assets.
Caution before a long-delayed September nonfarm payrolls reading, which is due this week, also benefited the dollar and weighed on metal prices.
Spot gold fell 0.7% to $4,019.19 an ounce, while gold futures for December slid 1.4% to $4,018.89/oz by 00:38 ET (05:38 GMT).
Gold slides as Dec rate cut bets ease; Sept payrolls on tap
Gold’s losses were triggered chiefly by markets rapidly pricing out expectations for a December interest rate cut by the Fed.
This came amid heightened caution over the U.S. economy, with delays in key official readings, due to a prolonged government shutdown, seen leaving the Fed blind going into the December meeting.
Oil slips as loadings resume at Russian hub.
Oil prices fell nearly 1% on Tuesday as supply concerns eased with the resumption of loadings at a Russian export hub, which was briefly halted by a Ukrainian drone and missile strike, as traders continued to assess the impact of Western sanctions on Russian flows.
Brent crude futures were down 56 cents, or 0.9%, at $63.64 a barrel, at 0720 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 54 cents, or 0.9%, at $59.37 a barrel.
Russia’s Novorossiysk port resumed oil loadings on Sunday following a two-day suspension triggered by a Ukrainian missile and drone attack, according to two industry sources and LSEG-compiled data.
Crude oil is trading marginally lower “as reports indicate that loadings have resumed sooner than expected at Novorossiysk,” IG analyst Tony Sycamore wrote in a note.
Exports from Novorossiysk and a nearby Caspian Pipeline Consortium terminal, together representing about 2.2 million barrels per day, or roughly 2% of global supply, were halted on Friday, pushing crude up more than 2% that day.
Asian markets slide.
Asian stocks sagged to one-month lows on Tuesday with the heaviest selling in Japan and South Korea’s tech-driven markets as earnings at chipmaker Nvidia loom later in the week as a test for valuations across the sector.
Mood-barometer bitcoin was sliding and below $90,000 for the first time in seven months. Japan’s Nikkei, down 3%, was headed for its largest one-day fall since April and FTSE and European futures were both down more than 1%.
“It’s starting to feel like investor conviction at current levels is fading,” said Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore.
“It’s less about a sharp catalyst and more about positioning fatigue, valuation sensitivity, and a growing sense that the rally needs a pause,” he said.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.8% to its lowest level since mid-October. South Korea’s KOSPI shed 3.3%, Australia’s S&P/ASX200 fell almost 2% and Hong Kong’s Hang Seng Index lost 1.67%.
The weakness across Asia stocks tracked an extended selloff on Wall Street overnight, with markets braced for a flood of economic data releases.
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