Bullion has maintained its strong position since the week opened and during the daily trading session with low volume due to the US market being closed for the Thanksgiving holiday.
At 8:20 AM, the gold price was at $4,169, up 0.24% since it opened early Friday trading in the Asian session.
The market is currently assessing the release of several important US economic data that were delayed due to the government shutdown; so far, employment reports show strong figures and inflation appears subdued, with expectations for a decline in the next report.
Uncertain signals throughout the week continue to strengthen hopes for the Federal Reserve (Fed) to cut rates by 25 basis points at the December FOMC meeting, with the market pricing in an 85% probability as reported by CME FedWatch.
Some dovish signals from Fed officials this week have put pressure on US Treasury yields, with the 10-year yield falling below 4%, impacting the US dollar’s position.
However, market focus is now on the peace negotiations between Russia and Ukraine, which could reduce demand for the safe-haven asset gold.
Additionally, a heated conflict this week arose over Japan-China tensions following Prime Minister Sanae Takaichi’s statement supporting Taiwan’s independence.
Geopolitical risks in the Asian region could push gold prices higher in line with the potential Fed rate cut.
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