[New York Gold Prices] US Rate Cut Expectations Rise—Gold Rebounds

(New York=Yonhap Infomax) Jin Woo Choi—International gold prices edged higher.

Gold reversed course to the upside as comments from key Federal Reserve officials revived expectations for a policy rate cut in December.

Gold, which does not yield interest, tends to be favored in a low-rate environment.

As of 12:30 p.m. local time on the 21st, December gold futures (GCZ5) on the COMEX division of the Chicago Mercantile Exchange (CME) were trading at $4,081.80 per troy ounce, up $21.80, or 0.54%, from the previous settlement price of $4,060.00.

Gold prices, which had been moving in the $4,050–$4,060 range during the London session, came under upward pressure following remarks by John Williams, President of the Federal Reserve Bank of New York.

Speaking at the Central Bank of Chile's centennial conference in Santiago, Williams stated, "I still see the possibility of further adjustments to the target range for the federal funds rate (FFR) in the near term to move policy closer to a neutral stance."

Williams, who serves as Vice Chair of the Federal Open Market Committee (FOMC) and holds a permanent voting right, fueled expectations for a rate cut with his comments.

According to CME FedWatch, as of 12:31 a.m. in New York, the federal funds futures market was pricing in a 69.5% probability that the Fed will cut rates by 25 basis points in December, a sharp increase of more than 30 percentage points from the previous day's 39.1%.

Jim Wyckoff, senior analyst at Kitco Metals, said, "Williams' remarks definitely supported gold prices," adding, "They provided bullish traders with a favorable catalyst early in the session."

jwchoi@yna.co.kr

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