Gold Falls Below $4,000 as Fed Cut Bets Fade

On Monday, some Federal Reserve officials expressed caution and did not support additional monetary easing in December. This follows last week's rate cut, which indicated that President Jerome Powell's decision might be the last reduction of the year. Market pricing now implies a 65% chance of a rate cut in December, down from over 90% just a week ago. Investors are closely monitoring upcoming data on U.S. private wages for more clarity on the Fed's policy trajectory. Meanwhile, the appeal of gold as a safe haven has diminished following last week's agreement between Washington and Beijing. This deal includes an extension of the tariff truce, a relaxation of export controls, and the reduction of other trade barriers. Additionally, China's decision to end a long-standing tax incentive on gold sales could drive up domestic prices and potentially weigh on demand in one of the world's largest bullion markets.