Gold Slips as Dollar Rebounds; Markets Bet on Fed Rate Cut

Gold prices edged lower on Wednesday as a stronger dollar and profit-taking halted the metal’s recent rally.

Spot gold fell 0.5% to $4,107.41 per ounce as of 0421 GMT, retreating from a near three-week high. U.S. gold futures slipped 0.1% to $4,113.80.

The U.S. dollar index rose 0.1%, snapping a five-day losing streak and pressuring gold, which becomes costlier for foreign buyers. Still, expectations for a Federal Reserve rate cut in December kept bullion supported, with traders pricing in a 68% chance of a 25-basis-point reduction, up from 64% earlier, according to CME’s FedWatch Tool.

Fed Governor Stephen Miran said a 50-bps cut could be warranted as inflation cools and unemployment rises.

Holdings in the SPDR Gold Trust (GLD) rose 0.41% to 1,046.36 metric tons, signaling strong investor demand.

Among other precious metals, silver slipped 0.4% to $51.05, platinum fell 0.4% to $1,578.95, and palladium dropped nearly 1% to $1,431.47.