Gold prices reversed earlier gains on Friday as hawkish comments from U.S. Federal Reserve officials clouded prospects for a December rate cut, although they remained set for a weekly gain supported by wider economic uncertainty.
Spot gold last fell 1.38% to $4,113.49 U.S. per ounce, after hitting $4,211.06 earlier in the session. Bullion is up 3.7% so far this week.
U.S. gold futures for December delivery fell 1.8% to $4,119 per ounce.
The U.S. government reopened after a record 43-day shutdown that had disrupted key economic data flows. The White House, however, tempered hopes for clarity on the economy, stating that October’s unemployment data may not become available.
Weighing on rate-cut expectations, some Federal Reserve officials have cited inflation concerns and relative labor market stability following two rate cuts earlier this year.
Traders reportedly now see a 49% probability of a quarter-point rate cut in December, down from 64% earlier this week.
Related Stories
