WASHINGTON (dpa-AFX) - Gold traded below $4,000 an ounce on Tuesday after three top Federal Reserve officials pushed back against expectations of another interest rate cut in December.
Spot gold dipped 0.2 percent to $3,992.03 an ounce in European trade, while U.S. gold futures were down 0.3 percent at $4,003.50.
The dollar index held near three-month highs as mixed comments from Fed officials dampened hopes for a December rate cut.
In her first policy speech since President Donald Trump tried to remove her from office, Federal Reserve Governor Lisa Cook said Monday that the rate decision in December would depend on how risks break down between stubborn inflation and a softening labor market.
Chicago Fed President Austan Goolsbee expressed caution about frontloading rate cuts, noting the rates need to decrease alongside inflation, which remains concerning.
San Francisco Federal Reserve President Mary Daly said she will analyze upcoming data before deciding on another reduction in December.
U.S. Treasury Secretary Scott Bessent has admitted that parts of the American economy are already in recession, adding the slowdown could broaden if the Fed delays further interest rate cuts.
Most analysts believe tariffs will be inflationary for the economy and could drag it to 'quite close to recession'.
Fed speeches and JOLTs job openings data may shed more light on the state of the world's largest economy later in the day ahead of the release of payroll processor ADP's report on private sector employment on Wednesday and the University of Michigan's customer sentiment report, due out Friday.
Meanwhile, media reports suggest that key Republican and Democratic leaders in the Senate are discussing a potential resolution to end the prolonged government shutdown, which is into its sixth week.
The Supreme Court is set to hear arguments this week on the legality of President Trump's most sweeping tariffs.
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