Gold Rises on Shifting Fed Outlook

Gold prices gained ground, rising above $4,150 as expectations for a near-term Federal Reserve rate hike faded. This sentiment contributed to a weaker US Dollar, which lent support to the precious metal as well as currencies like the Australian and Canadian Dollars.

Geopolitical Developments Influence Markets

Geopolitical events remained a key focus, with reports of an oil tanker striking a mine in the Strait of Hormuz highlighting risks that can support safe-haven assets. Meanwhile, US diplomatic efforts concerning Russia, including a waiver of some sanctions to facilitate talks, contributed to a decline in oil prices. Political uncertainty in France was also noted as a factor weighing on the Euro.

Stronger Chinese Data Boosts Commodity Currencies

China released better-than-expected economic data, with third-quarter GDP expanding by 4.5% year-over-year, surpassing the 4.4% consensus forecast. The upbeat figures provided a lift to commodity-linked currencies with close trade ties to China, notably the Australian and New Zealand Dollars.

Global Central Banks Signal Policy Considerations

Commentary from other major central banks provided further context on the global monetary policy landscape. An official from the Reserve Bank of Australia noted that neutral interest rates appear to be increasing globally, while the Bank of Japan Governor stated that underlying inflation was nearing the central bank's 2% target.