Gold Retreats as Fed Rate Cut Bets Surge to 72%
Gold prices slid to $4,052-$4,065 per ounce amid shifting market sentiment. The metal's traditional safe-haven appeal waned as traders recalibrated expectations following dovish signals from Federal Reserve officials.
New York Fed President John Williams catalyzed the move, suggesting rate cuts could occur without jeopardizing inflation targets. His remarks highlighted growing concerns about labor market softening and contained inflation risks. Markets responded aggressively - December rate cut probabilities vaulted from 40% to 72% within days.
The dollar's six-month high compounded pressure on bullion, raising acquisition costs for foreign buyers. This week's delayed economic data releases - including retail sales, GDP revisions, and PCE figures - now carry heightened significance for monetary policy trajectories.
