Gold retreats after a strong rise amid uncertainty over the US interest rate decision.

Arabian Sea Newspaper - Special

Gold prices fell on Thursday as investors took profits after rising to a nearly two-week high in the previous session, while expectations for a U.S. interest rate cut in December remain uncertain due to differing stances from Federal Reserve officials. By 06:16 GMT, spot gold fell 0.3% to $1,953.49 per ounce, and U.S. gold futures for December delivery also fell 0.5% to $1,950 per ounce. Brian Lan of Gold Silver Central said the decline was due to profit-taking after recent gains, noting that "the picture is still unclear regarding the Fed's direction, so gold is moving cautiously." This comes amid conflicting statements from U.S. central bank officials, with some pointing to the possibility of a rate cut soon due to signs of a weakening labor market, while others called for sticking to the policy of monetary tightening until inflation approaches the target level of 2%. In the same context, potential Fed chairman candidate Kevin Hassett supports cutting interest rates, which is in line with President Donald Trump's orientations. The CME's FedWatch tool shows that markets are pricing in a probability of a rate cut in December of up to 85%. It is worth noting that gold, which does not generate returns, usually benefits from a low interest rate environment.