Gold prices increased by 0.38% to 134,130, bolstered by expectations of U.S. monetary easing and strong official sector demand. Indicators of a cooling labor market suggest the Federal Reserve may implement two rate cuts in 2026, following a recent rate cut. Fed Chair Jerome Powell’s comments implied no further rate hikes are anticipated, leading traders to foresee more aggressive easing. Central banks, including China, continue to increase gold reserves, contributing to strong demand, as evidenced by a net addition of 53 tonnes globally in October and consecutive inflows into gold ETFs.
Everyone expect interest rates to fall and central banks keep buying, which is supporting demand.
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