TechFlow, October 20 — According to Jinshi Data, spot gold surged 2% on Monday, driven by market expectations of further rate cuts from the Federal Reserve and sustained safe-haven buying, while investors closely monitor developments in trade tensions and upcoming U.S. inflation data due this week.
Jeffrey Christian, managing partner at CPM Group, said: "After last Friday's sharp sell-off, geopolitical and economic concerns are once again pushing gold prices higher. We expect gold prices to continue rising over the coming weeks and months, and it wouldn't be surprising if they soon reach the $4,500 level." The U.S. federal government shutdown has entered its 20th day, with the Senate failing for the tenth time last week to break the deadlock. The shutdown has delayed the release of several key economic indicators, leaving investors and policymakers in a data vacuum ahead of the Fed's policy meeting next week. The delayed U.S. Consumer Price Index data is expected to be released this Friday. Currently, traders price in a 99% chance of a Fed rate cut next week, followed by another cut in December.
