Spot Gold On Track To Snap 2-Day Loss On Rate Cut Hopes

• On Friday, Federal Reserve President John Williams reportedly indicated that a third rate cut could still be on the table this year.
• The Dollar index held above 100 on Monday, trading near its six-month high set on Friday.
• SPDR Gold Shares ETF (GLD) was up 0.22% at $375.10 on Monday.

Spot gold prices firmed up on Monday after declining for the past two sessions, with the XAU/USD pair up 0.45% at $4,084.24 per ounce.

Spot gold has gained around 55% so far this year. U.S. gold futures for December delivery traded marginally lower at $4,078.10 per ounce.

Gold prices rose amid rising expectations of a rate cut next month, offsetting the drag from a stronger U.S. dollar. The DXY held above 100 on Monday, trading near its six-month high set on Friday.

Last week, John Williams, President and CEO of the Federal Reserve Bank of New York, reportedly indicated that a third rate cut could still be on the table this year. He noted that weakening labor market conditions now pose a greater economic risk than rising inflation, suggesting the Fed may need to reduce its key interest rate.

According to data from the CME FedWatch tool, there is a 75.7% probability of a 25-basis-point rate cut at the December 10 meeting. A week back, the figure stood at 42.4%. 

Last week, the Bureau of Labor Statistics (BLS) released the delayed September jobs report, showing that the U.S. economy added more jobs than expected. However, the unemployment rate in September climbed to a four-year high of 4.4%, the highest since October 2021.

Brokerages Remain Bullish

Last week, UBS raised its mid-2026 upside target for gold to $4,900 per ounce from $4,700, with the firm arguing that the fundamentals driving this year’s surge remain firmly in place heading into 2026. UBS said that the key macro drivers, including further Federal Reserve rate cuts, lower real yields, and geopolitical tension, should continue to support demand. 

UBS’ view echoes recent bullish commentary from Goldman Sachs, which also sees gold hitting $4,900 by the end of 2026.

How Did Stocktwits Users React?

SPDR Gold Shares ETF (GLD) was up 0.22% at $375.10 on Monday. Retail Sentiment on Stocktwits for GLD has remained in the ‘bearish’ territory over the past 24 hours.

Retail sentiment on iShares Gold Trust (IAU) turned 'bearish' from 'neutral' a day earlier.

Read also: Why Is DGNX Stock Rising Premarket Today?

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