Gold steady as market weighs chance of another US rate cut

Spot gold was steady at $4,064.32 an ounce as of 8:50 a.m. in Singapore after dropping 0.3% on Friday.

Gold was steady in Asia as the market weighed the chances of another Federal Reserve rate cut before the end of the year.

New York Fed President John Williams said he sees room for a reduction in borrowing costs in the near term as the labor market softens, although other officials sounded more cautious. Bullion pared losses on Friday after Williams’ comments but still ended the session modestly lower.

The US government shutdown delayed the release of economic data that the market would normally use to gauge the chances of a cut. September retail sales and producer-price data due on Tuesday, as well as jobless claims on Wednesday, should provide a much-needed temperature check on the economy. Futures traders are pricing in a slightly more than 60% chance of a quarter-point cut next month.

Gold has been in a consolidation phase since surging to a record high above $4,380 an ounce on Oct. 20. It’s still up around 55% this year, supported by heightened trade and geopolitical uncertainty, as well as concerns over deteriorating fiscal outlooks for many governments.

Spot gold was steady at $4,064.32 an ounce as of 8:50 a.m. in Singapore after dropping 0.3% on Friday. The Bloomberg Dollar Spot Index added 0.1%. Silver, platinum and palladium all edged higher.