Gold Slips Slightly Despite Weak U.S. Dollar and Rising Rate-Cut Expectations

Gold edged lower on Tuesday, settling around $4,131.93 per ounce, down just 0.05% from the previous session, as the metal failed to build on Monday’s gains despite a softer U.S. Dollar.

During the session, gold briefly reached a high near $4,159, before easing back toward its intraday low of $4,109, reflecting investor hesitation as risk appetite improved across financial markets.

The pullback came even as comments from Federal Reserve Governor Christopher Waller boosted expectations for an interest-rate cut in December. Waller signaled that slowing labor-market conditions and cooling inflation could justify easing policy soon, with the Fed reassessing conditions meeting by meeting starting next year.

Recent U.S. data added to this outlook, showing slower retail spending, moderate producer-price growth, and a further decline in the four-week average of employment changes — all signals that economic momentum is softening.

These factors encouraged investors to shift toward riskier assets, limiting gold’s ability to capitalize on the weaker dollar, even though the metal typically benefits in times of uncertainty.

With markets awaiting more U.S. economic releases later in the week, gold remains trapped in a tight range as traders look for clearer signals on the Fed’s next move.

Market sentiment suggests strong expectations that the Fed may ease rates in December to support the economy. Gold’s upward momentum continues as traders await upcoming economic reports that could provide further clarity.

With uncertainty in the air, gold remains a preferred refuge for investors seeking stability in a changing financial landscape.