Yen Slides as BOJ Caution Undercuts Rate Hike Impact 
U.S. Stocks End Week Higher as Tech Rally Offsets Consumer Weakness 
Wall Street Ends Higher as S&P 500, Nasdaq Extend Gains Ahead of Holiday Week 
UK Economy Grows 0.1% in Q3 2025 as Outlook Remains Fragile 
EU Delays Mercosur Free Trade Agreement Signing Amid Ukraine War Funding Talks 
China Keeps Benchmark Lending Rates Steady as Economic Outlook Remains Cautious 
Russia Stocks End Flat as Energy Shares Support MOEX Index 
RBA Signals Possible Interest Rate Hike in 2026 as Inflation Pressures Persist 
IMF Reaches Staff-Level Agreement With Egypt, Opening Path to $3.8 Billion in Funding 
Japan Signals Possible Yen Intervention as Currency Weakens Despite BOJ Rate Hike 
Kevin Hassett Says Inflation Is Below Target, Backs Trump’s Call for Rate Cuts 
Oil Prices Ease in Asia as Geopolitical Risks Clash With Weak Demand Outlook 
Asian Stocks Rise as Wall Street Tech Rally Lifts Markets, Yen Slumps Despite BOJ Rate Hike 
Oil Prices Climb in Asian Trade as Venezuela Sanctions and Middle East Tensions Fuel Risk Premium 
Why U.S. Coffee Prices Are Staying High Despite Trump’s Tariff Rollbacks 
On Wednesday, gold prices hovered below the flatline after hitting a fresh record high in Asian trading. By 07:07 ET (11:07 GMT), spot gold was down 0.03%, trading at $2,656.24 per ounce. Earlier in the session, the precious metal reached an all-time high of $2,670.43 an ounce.
Interest Rate Prospects and Middle East Tensions Boost Gold
Andrzej Barabasz, CC BY-SA 4.0, via Wikimedia Commons
The prospect of declining interest rates supported gold, as traders priced in a reduced opportunity cost for investing in non-yielding assets. Tensions in the Middle East, following Israeli strikes in southern Lebanon, also increased demand for the safe-haven asset. Furthermore, China’s recent economic stimulus measures added further support to gold prices, as supported by an article from BBC.
Market Awaits Fed Commentary and Inflation Data
Traders are closely watching Federal Reserve officials' comments and the release of the central bank's preferred inflation gauge on Friday for clues about U.S. monetary policy. Citi analysts predict 125 basis points in rate cuts by the Fed this year, while Goldman Sachs anticipates 25 basis point cuts at each meeting from November through June 2025.
Contrasting Views on Rate Cuts and Gold’s Future
Fed Governor Michelle Bowman cautioned against steep rate reductions, noting that key inflation indicators remain “uncomfortably above” the Fed’s target, according to an article from CNBC. Her stance contrasts with other Fed officials who argue that rate cuts are needed to ease economic pressures.
The authors are unknown, but the pictures belong to the Alliance for Responsible Mining., CC BY-SA 4.0, via Wikimedia Commons
"The scenario outlined by Ms. Bowman, while possible and gold bearish, is not one adopted by gold investors who, by initiating repeated record highs, are showing faith in more rapid rate cuts and what that means for gold," wrote HSBC analysts.
