Gold prices experienced downward pressure early last week as markets reassessed the likelihood of an imminent interest rate cut by the US Federal Reserve, according to ANZ. This shift in market sentiment was largely influenced by stronger-than-anticipated US jobs data for September. Uncertainty was further compounded by delays in broader economic data releases stemming from the US government shutdown.
However, gold prices managed to recoup some of their losses on Friday following comments from New York Fed President John Williams. Williams indicated that there might be scope for near-term rate cuts as the labour market shows signs of softening. He noted an increase in downside risks to employment coupled with a decrease in upside risks to inflation.
Spot gold was last recorded trading at $US4065.27 per ounce. The uncertainty surrounding the Federal Reserve’s monetary policy decisions also significantly impacted base metals. ANZ reported that the entire base metals complex concluded the week in negative territory amidst a risk-averse environment prevailing across global markets. Copper losses were tempered by ongoing tightness observed in the physical market.
ANZ is a major Australian bank providing a range of banking and financial products and services to retail, commercial, and institutional customers. The bank operates in Australia, New Zealand, and the Asia Pacific region.
