Gold wavered as assets from equities to cryptocurrencies declined on fading expectations for US interest‑rate cuts and nervousness over tech earnings.
Equity gauges were in the red across the globe as jitters over lofty valuations amplified the risk‑off mood ahead of a Nvidia Corp. report on Wednesday. While gold often performs well when investors seek haven from market turmoil, it can also suffer in the short term as traders are forced to unwind leveraged positions.
Both gold and silver “continue to feel the weight of equity‑driven risk aversion, where rising volatility forces leveraged positions to be pared back,” analysts at Saxo Bank AS wrote in a note Tuesday. “In addition, fading expectations for another US rate cut next month are also weighing on sentiment.”
Interest‑rate swaps now imply a less‑than‑50% likelihood of a December cut after all but pricing in a quarter‑point move less than a month ago.
A key clue on the health of the US labor market will come on Thursday, when the Bureau of Labor Statistics is set to release the September jobs report. While the data will be more backward‑looking than usual, the figures will still help shed light on the state of the world’s largest economy after the six‑week shutdown.
Gold has gained more than 50% this year despite the recent pullback, and remains on course for the best annual gain since 1979. Investors have bought the metal as a hedge against growing fiscal unease in several major economies, while elevated central‑bank buying also provided crucial support for bullion’s blistering run to a record above $4,380 last month.
Official‑sector purchases will likely continue, according to Goldman Sachs Group Inc. Central banks bought an estimated 64 tons in September, more than triple the amount in August, analysts from the bank said in a note. China alone added an estimated 15 tons, they said; that figure is higher than the 1.24 tons reported by the nation’s central bank for that month.
Meanwhile, investors were also tracking the legal tussle between Fed Governor Lisa Cook and the Trump administration, which has sought to oust her on allegations of mortgage fraud. This week, Cook offered a rebuttal of the claims in a letter to Attorney General Pam Bondi. The US Supreme Court is set to hear arguments on Jan. 21 on Cook’s challenge.
Gold rose to $ an ounce as of in New York. The Bloomberg Dollar Spot Index was little‑changed. Silver, palladium, and platinum all inched higher.