Gold prices hold near 6-wk high.
Gold prices traded near a six-week high on Monday, supported by a weaker dollar and firm expectations that the Federal Reserve could cut interest rates at its meeting later this month.
The US Dollar Index traded at a two-week low on Monday, making bullion more attractive for non-U.S. buyers, while risk-off sentiment in broader markets helped sustain demand for safe-haven assets.
Market pricing now reflects an 87% probability of a 25-basis-point Fed rate cut in December, driven by a run of softer U.S. economic data and indications that inflation pressures are receding.
The shift in expectations has strengthened over the past week, yet investors remain cautious due to a lack of fresh official data following the prolonged government shutdown. Mixed commentary from Fed policymakers has also added to the uncertainty.
Political developments added another layer of intrigue. U.S. President Donald Trump said on Sunday that he already knows whom he intends to nominate as the next Federal Reserve Chair, though he did not reveal the candidate.
His comments revived speculation around several names viewed as contenders, including Kevin Hassett, former Fed Governor Kevin Warsh, and current Governor Christopher Waller.
Asian stocks slip.
Stocks fell on Monday after a strong end to November as a bout of risk aversion gripped markets even as U.S. rate-cut optimism remained intact, while the beaten-down yen firmed and Japanese government bond yields surged to their highest since 2008.
The spotlight in the currency market has been on the Japanese yen, which strengthened to 155.55 per U.S. dollar as Bank of Japan Governor Kazuo Ueda provided the clearest signal yet that interest rate hike could be on the cards soon.
Ueda said in a speech to business leaders that the central bank would consider the “pros and cons” of raising rates at its next policy meeting in two weeks.
After a strong comeback for equities in November, when investors shrugged off worries of an AI bubble, traders were looking for catalysts to continue any upward momentum, with the focus this week on economic data.
US stock futures dip after weekly gains.
U.S. stock futures edged lower on Sunday evening after a week of modest gains, as investors weighed rising expectations for a Federal Reserve rate cut in December, and the market impact of a possible new Fed chair.
S&P 500 Futures inched 0.3% lower to 6,838.25 points, while Nasdaq 100 Futures fell 0.4% to 25,380.25 points by 19:37 ET (00:37 GMT). Dow Jones Futures traded 0.2% lower at 47,644.0 points.
Fed rate cut bets firm
Last week, Wall Street ended higher, with technology and retail stocks leading the advance. For the week, the S&P 500 rose 3.7%, and the NASDAQ Composite climbed nearly 5%. The Dow Jones Industrial Average also jumped more than 3%.
Investors have increasingly bet that the Fed will deliver a quarter-point interest-rate cut at its December meeting. The odds of a cut have soared to around 85% from roughly the mid-40s only a week ago.
Dovish signals from Fed officials — including comments from the New York Fed President and a Fed governor saying conditions may warrant a rate reduction — have helped fuel those expectations, though uncertainty remains given limited fresh data.
Fed chair appointment in focus
At the same time, markets are facing growing uncertainty about who may be tapped to lead the Fed next. President Donald Trump said on Sunday, “I know who I am going to pick” as a preferred replacement for current chair Jerome Powell.
Important Note: The information found on Ausprime platform is intended only to be informative, is not advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not include any specific investment objectives, financial situation and needs of any specific person who may receive it. The past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statement
