Commodities
Gold Stabilizes Above $4,000 as Rate Hike Expectations Ease
Gold prices held steady near $4,415 an ounce after adding 1.5% over the previous two sessions. The metal's gain is attributed to reduced expectations of a Federal Reserve interest rate hike, which weakened the US dollar and made gold cheaper for most buyers.
The US dollar index dropped to its lowest since May due to softer US economic data. Investors are no longer fully pricing in another rate increase by the Fed before the end of the year, unlike just a week ago.
Despite this gain, the risk of monetary tightening remains a headwind for gold. Tensions around the Strait of Hormuz and the Middle East continue to pose risks to the market.