The macro signal
Global bullion was trading around $4,160 an ounce, having gained 1% in the previous session on comments from Federal Reserve policymakers that pointed to further easing. Swap traders now price roughly an 80% probability of a 25-basis-point rate cut in December. The latest weekly jobless claims are not expected to change the Fed’s direction, even with moderating momentum in gold-backed funds.
Investor positioning found further conviction as Kevin Hassett emerged as a leading contender to head the Federal Reserve. Traders see him as likely to align with former President Donald Trump’s preference for lower rates, a policy stance that has historically supported non-interest paying assets such as gold.
Local implications in Dubai
Bullion has risen nearly 60% this year, on track for its best annual performance since 1979, supported by elevated central bank purchases and a wider retreat from sovereign bonds, currencies, and interest-linked assets.