Gold prices approached $2,600 per ounce on Monday, rebounding sharply after suffering their largest weekly drop since 2021. The recovery was driven by a pause in the US dollar rally and increased demand for safe-haven assets amid escalating tensions in the Ukraine war.
Gold recovers after sharp weekly loss
President Joe Biden recently authorized the use of advanced, long-range American weaponry by Ukraine inside Russian territory, following reports that Moscow has amassed nearly 50,000 troops in Kursk to reclaim areas lost over the summer.
Fed's cuts hit the sentiment
Adding to market uncertainty, comments from several Federal Reserve officials last week left investors questioning the timing and scale of potential rate cuts. Despite this, the markets currently see a 65% probability of a 25 basis-point rate cut in December. This week, investors are closely watching upcoming statements from other Fed policymakers for clearer signals on the future trajectory of US interest rates.
