Gold prices are up another 0.6% after jumping 1.73% yesterday on the back of a weakening US dollar. Heightened uncertainty over the Russia-Ukraine conflict has also increased demand for safe-haven assets.
Now market participants are preparing for the speeches of Fed policymakers, hoping to get hints about the prospects for the interest rate. Recent strong economic data has raised concerns about whether the Fed will continue to cut rates after easing monetary policy by 75 basis points since September. Experts said that the gold price move will be a reflection of any change in expectations about the December meeting, and any economic data or comments from policymakers pertaining to it will be relevant. According to the CME FedWatch Tool, markets see a 58.4% probability of a 0.25% rate cut in December (compared to 61.9% yesterday). Non-yielding assets like bullion thrive in a lower interest rates environment and amid geopolitical uncertainties.