Doubts about US interest rate cuts weigh on Gold price – Commerzbank
The Gold price fell slightly again yesterday, as it remained unclear when the US data releases that were missed due to the US government shutdown would be made up for, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
Risk of a decision against an interest rate move in December
"The Bureau of Labor Statistics, which collects data on both the labor market and consumer prices, plans to announce the new release dates in the coming days. However, this does not mean that reliable data for assessing the economic situation will be available anytime soon."
"After all, data collection during the shutdown is likely to have been limited, if it took place at all. Kevin Hasset, economic advisor to the US government, has already pointed out that the labor market report for October will not contain any data on the unemployment rate."
"Some members of the Fed's Open Market Committee had already signaled that they would feel uncomfortable about further interest rate cuts without reliable data on the labor market and inflation. There is therefore a risk that a majority will decide against an interest rate move in December for the time being, until the picture becomes clearer again."
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FXStreet Insights Team
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