Quick overview

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The bullion asset dropped despite some profit-taking at all-time highs as the dollar leveled off in anticipation of additional U.S. cuts.

Labor market and interest rate reductions are anticipated in the days ahead. The belief that the Federal Reserve will lower interest rates later this month caused the yellow metal to reach a string of all-time highs this week, surpassing $3,500 an ounce

The developed world’s high levels of public debt also increased demand for gold as a haven. While December gold futures dropped 1.3 percent to $3,590/oz, spot gold dropped 0 points8 percent to $3,532/oz.

Several factors, including safe-haven demand, drove spot gold to a record high of $3,578.80/oz yesterday .

However, given that worries about Fed independence were beginning to fade, this left the yellow metal vulnerable to some profit-taking. An appeals court’s decision that the majority of President Donald Trump’s levies were unlawful, coupled with uncertainty surrounding US trade tariffs, increased demand for gold.

Trump hinted that any decision against his tariffs would be detrimental to the recent trade agreements his administration has signed and that he would appeal the decision to the Supreme Court. In addition, amid a legal battle over Trump’s attempts to fire Fed Governor Lisa Cook, questions about Fed independence persisted.

However, Trump’s choice for Fed governor, Stephen Miran, allayed some of these worries by promising to keep the central bank politically neutral. Although a slight recovery in the greenback caused a broad reversal in metal prices from recent peaks, earlier this week’s dollar weakness helped gold and other precious metal prices.