Gold Sees Largest Drop in Over a Month as Rate Cut Expectations Fall

Gold prices fell by more than 1% on Tuesday, marking their largest drop in over a month. This decline came after recent U.S. employment data lowered expectations for a large interest rate cut from the Federal Reserve.

Spot gold dropped 1.1% to $2,614.49 per ounce, marking its fifth consecutive session of losses and moving further from the record high of $2,685.42 reached on September 26.

The reduced rate cut expectations stem from a strong U.S. jobs report, with markets now expecting a 25-basis-point cut in November instead of the previously anticipated 50-basis-point cut. 

Gold futures also fell 1.1%, settling at $2,635.4. 

Markets are now focused on the Federal Reserve’s policy meeting minutes along with the U.S. inflation data set for later in the week. 

In September, gold-backed exchange-traded funds (ETFs) registered their fifth consecutive month of inflows, according to the World Gold Council. 

Meanwhile, other metals also saw declines, with silver dropping 4.3% to $30.36 per ounce, platinum falling 1.9%, and palladium declining 1.1%.