Gold Rises Amid Expectations of Fed Rate Cuts

Recent figures suggest a slowdown in consumer spending, with retail sales only increasing by 0.2% in September after a more significant rise in August. This indicates a decline in expenditure. At the same time, producer price data showed that inflationary pressures remain largely in line with forecasts. This situation follows statements from several Fed officials who expressed support for a rate cut next month due to weakness in the labor market. Markets are now pricing in over an 80% chance of a 25 basis point reduction, up from 50% a week earlier. However, the rise in gold prices is being tempered by signs of easing geopolitical tensions, particularly after Ukrainian authorities reached a peace plan agreement with Russia, which has reduced demand for safe-haven assets.