Gold was little changed, as traders weighed the prospects of an interest-rate cut in the US against a possible peace deal in Ukraine.
Bullion was trading around $4,135 an ounce, having wavered during the previous session. Delayed economic data strengthened bets that the Federal Reserve will lower rates at its upcoming meeting. A modest rise in September retail sales showed that several months of robust spending have lost steam, while consumer confidence this month saw its steepest decline since April.
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Reinforcing prospects for a lower-rate environment, the likely frontrunner to be the next Fed chair – White House National Economic Council Director Kevin Hassett – is seen as someone who shares President Donald Trump’s support for cutting the cost of borrowing, Bloomberg reported. Gold typically benefits when rates are low, as it doesn’t pay interest.
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Bullion’s gains, however, were tempered after ABC News reported that Ukrainian officials had agreed to a plan to end the war with Russia. A conclusion to the protracted war would dampen demand for haven assets like gold.
Gold edged up 0.1% to $4,135.08 an ounce as of 7:41 a.m. Singapore time. The Bloomberg Dollar Spot Index ended the previous session 0.3% lower. Silver and palladium were little changed, while platinum edged higher.