Gold trades near two-week high

Gold prices traded around $4,130 per ounce on Wednesday, remaining near a more than two-week high, buoyed by growing expectations of an imminent Federal Reserve rate cut.

The precious metal continued to draw support from softer US economic data, with private reports indicating that American companies shed an average of 11,250 jobs per week in the four weeks ending October 25, underscoring persistent weakness in the labor market and reinforcing bets on monetary easing.

Traders now price in roughly a 68% probability of a 25 basis point rate cut at the Fed’s upcoming meeting, with some analysts suggesting the possibility of a deeper reduction if upcoming data show further deterioration in growth or employment indicators.

Lower interest rates tend to boost gold’s appeal by reducing the opportunity cost of holding non-yielding assets.

Meanwhile, investors are closely watching a series of key official economic releases as the US government moves to end its longest-ever shutdown.

The restart, expected within days after the Senate’s approval of a temporary funding measure, is anticipated to restore federal operations and provide clarity on delayed reports such as payrolls and inflation data.

The resumption of government activity could help ease some economic uncertainty, though analysts note that lingering concerns about fiscal stability and slowing global growth may continue to underpin demand for safe-haven assets.

Overall, gold remains on track for its strongest annual performance since 1979, as investors seek refuge from geopolitical tensions, volatile equity markets, and shifting expectations for global monetary policy.