Gold rose above $4,130 on Tuesday, hitting a three-week high as growing economic uncertainty in the US fueled expectations for a near-term Federal Reserve rate cut. Last week’s data showed job losses in October, particularly in government and retail sectors, while consumer sentiment fell to a 3½-year low in early November. Traders are pricing in about a 64% chance of a 25-basis-point Fed cut in December, with Fed Governor Stephen Miran advocating a larger half-point reduction amid falling inflation and rising unemployment. Meanwhile, the US Senate advanced a measure to reopen the federal government after a 40-day shutdown, potentially reducing safe-haven demand for gold. Elsewhere, JP Morgan Private Bank projected that gold could surpass $5,000 per ounce next year, largely supported by central bank buying in emerging markets.
