Gold traded steadily in the middle of the European session on Monday, November 24th, the opening session of the week, as market expectations for an interest rate cut at the December meeting shifted following comments by John Williams at the end of last week. Markets are also awaiting some important economic data releases this week. Gold is trading at $4068 per ounce, up 0.08%, while silver is trading at $50.06 per ounce, up 0.13%.

Market expectations for a US Federal Reserve interest rate cut at its meeting on December 10th have increased. According to the CME FedWatch tool, the probability of a 25-basis-point rate cut in December has risen to 75%, compared to 25% for a rate hold. This is a significant increase from just 35% at the end of last week, when the probability of a rate cut exceeded 65%.

Comments by New York Federal Reserve President John Williams strongly supported this sudden shift in expectations, as he indicated that the bank could still cut interest rates despite the labor market’s slowdown without impacting inflation. Markets are awaiting the release of the US Producer Price Index (PPI) this week, along with retail sales and weekly jobless claims. However, inflation figures for consumer spending and US GDP growth are not expected this week, having been postponed due to the US government shutdown.

Platinum is trading at $1,514, up 0.23%, while palladium is down about 0.13%, trading at $1,372.