Gold is holding its ground this morning around $4,089 per ounce after a choppy start to the week.
Overnight, investor attention remained focused on stretched government spending in developed economies, particularly Japan, where bond yields spiked sharply on reports of a planned $163 billion fiscal package. The move reignited concerns about fiscal stability and prompted safe-haven buying in gold.
Markets are also watching the Federal Reserve. Weak labor data and delayed official releases during the U.S. government shutdown have left traders weighing the likelihood of a December rate cut. The chance of a 25-basis-point reduction currently sits around 42%, down from 62% last week, keeping the dollar supported and non-yielding assets under some pressure.
Adding to market focus, NVIDIA is reporting earnings today. Investors will be looking for reassurance that AI investments are delivering returns. Strong results could lift risk appetite, potentially reducing gold’s appeal, while weaker results could reinforce safe-haven demand.
The Fed’s October meeting minutes today will provide further cues on policy, with markets balancing safe-haven flows against evolving risk sentiment.