Gold drops as expectations of another Fed rate cut weaken

Gold prices fell on Tuesday amid uncertainty over whether the U.S. Federal Reserve will move ahead with another interest rate cut, Prime reported, citing market data and analyst commentary.

By 10:37 Baku time, December gold futures on Comex were down $64.74, or 1.59%, at $4,009.76 per ounce. December silver futures fell 2.75% to $49.315 per ounce.

“Expectations that the Fed will cut rates again next month dropped to 42% from nearly 100% after the September decision. That has dampened investor interest in gold,” Reuters quoted analysts at ANZ as saying.

The next Fed meeting is scheduled for December 9–10. According to CME Group estimates, 53.4% of analysts expect the rate to remain at 3.75–4%, while others see room for a cut to 3.5–3.75%.