Gold prices are currently at $2,655 per ounce, a slight increase from $2,647 at the beginning of last week.
In 16 days, the Federal Reserve will meet to decide if U.S. economic conditions warrant another 25 basis point interest rate cut. Last week’s key reports, including Core PCE inflation and 3rd Quarter GDP, came in as expected, with no revisions. A rate reduction appears likely with ongoing "status quo" data on inflation and employment. As of this morning, CME Group reports a 62.5% chance of the 25 basis point cut.
In global news, Chinese state media announced the discovery of a gold ore deposit in central Hunan, estimated to contain over 1,000 tonnes of gold. This substantial finding has the potential to reshape the global gold market. As the world’s largest gold producer, China, which accounted for around 10% of global output in 2023, now has the potential to significantly increase its gold reserves. Before this discovery, China’s gold reserves were estimated at 2,264 tonnes, a figure that could soon be dwarfed by this new find.
Potential Market Moving Events for the Week:
- Tuesday, December 3rd: Job Openings
- Wednesday, December 4th: ADP Employment & Fed Chair Jerome Powell Speech
- Friday, December 6th: U.S. Employment Numbers and Rate
On Saturday, President-elect Donald Trump issued a stark warning of 100% tariffs on a bloc of nine nations if they undermine the U.S. dollar. The BRICS alliance, referenced by Trump, includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. This potential move could have a significant impact on global trade and currency markets, raising concerns about the stability of the current economic landscape.
For more information on BRICS and the implications of de-dollarization, check out our recent webinar, "BRICS and De-Dollarization."
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byUnited States Gold Bureau