Gold Edges Down As Markets Await Upcoming Economic Data

(RTTNews) - Gold prices moved lower on Monday, extending the decline seen over the two previous sessions, as the attention of investors turns to upcoming key economic signposts on inflation, employment, and other indicators amid diminishing expectations of a rate cut by the U.S. Federal Reserve.

Front Month Comex Gold for November delivery fell by $19.30 (or 0.47%) to $4,068.30 per troy ounce.

Front Month Comex Silver for November delivery gained incrementally by $3.50 cents (or 0.07%) to $50.625 per troy ounce.

The U.S. government shutdown that rattled the markets worldwide for more than 40 days ended last Thursday with the successful passage of a temporary funding bill by Congress to run the government through January 30.

With government agencies back to business, markets are anticipating many pending and upcoming economic releases to get a glimpse on the state of economy and for clues on which way the U.S. Fed will decide on interest rates.

The fiscal scenario slammed hard by the tariff war was hit again due to the longest shutdown in the U.S. history.

While the September jobs report is due on Thursday more up-to-date labor and price figures are not due until next month.

Last week's remarks from Federal Reserve officials against the need for lowering interest rates further has diminished rate cut expectations.

Currently, investors are pricing in a 40.9% chance of a 25-basis-point interest rate cut at the Federal Reserve's upcoming December 9-10 meeting versus the recent 50-plus odds.

Nonyielding commodities usually gain in a low-interest regime.

Consolidation in the U.S. dollar also weighed on gold prices, making the yellow metal expensive for foreign buyers.

However, analysts are optimistic that gold is on track for its strongest performance in the recent past due to ongoing gold accumulation by global central banks, global fiscal uncertainty, and the transient nature of the reopening as the government faces the next shutdown deadline by January 30.