
Market sentiment strengthened around expectations of imminent U.S. monetary easing, with the CME FedWatch Tool showing a 67% chance of a 25-basis-point rate cut at the Federal Reserve’s December 10 meeting, up from 62% the day before. The softer dollar boosted demand for precious metals, with gold and silver advancing in tandem. Bullion’s upward momentum appears to have resumed as traders bet that weak U.S. economic data will justify additional policy easing. If the trend in soft macroeconomic indicators continues, gold could target higher levels in the coming weeks.
U.S. stocks hold their ground as investors await October’s CPI reading. Optimism about the government shutdown ending and the growing likelihood of another round of monetary easing so far have failed to sustain a broad rally. The Dow gained steadily, but the Nasdaq and S&P 500 struggled to gain traction as traders digested signs of slower hiring from ADP data. Investors broadly welcomed the progress toward reopening the government after a prolonged shutdown that disrupted economic reporting and public services. However, while the shutdown poses a political challenge, the weakening labor market data could prove beneficial for investors by increasing the chances of lower borrowing costs, especially important for capital-intensive sectors like AI.
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