According to Odaily, recent data on the United States' personal consumption expenditures met expectations, bolstering market optimism for a potential interest rate cut by the Federal Reserve in December. This anticipation has led to a slight increase in gold prices during the early Asian trading session. Analysts from ANZ Bank highlighted in a research report that the overall market performance was subdued overnight due to the Thanksgiving holiday in the U.S. Currently, the commodities market estimates a 70% probability of a 25 basis point rate cut in December, up from 56% a week ago.
In addition to economic factors, geopolitical tensions in Europe have also influenced market dynamics. Analysts noted that the demand for safe-haven assets has been bolstered following a missile attack by Russia on Ukraine, which has heightened geopolitical tensions across the continent. This situation has contributed to the increased interest in gold as investors seek to mitigate risks associated with geopolitical instability. The combination of these economic and geopolitical factors continues to shape market expectations and investor behavior as the year progresses.