Gold Prices Rise as Investors Weigh Rate-Cut Hopes Against Stock Market Volatility

Gold prices rose for a second consecutive day, as investors weighed the prospects of a potential rate cut by the Federal Reserve against growing stock market jitters. Bullion climbed as much as 0.7% on the day, having also increased in the previous session to break a three-day losing streak. The gains came as investors awaited the release of minutes from the Federal Reserve's last meeting, which is expected to provide insight into the central bank's monetary policy stance. A key week for US economic data is also underway, with several high-profile reports scheduled for release. The Federal Reserve's next policy decision is due in December, and a rate cut is seen as a possibility by some analysts. The immediate impact of the gold price rise was felt in the markets, with investors shifting their focus to safe-haven assets. The US dollar index, which measures the value of the dollar against a basket of major currencies, fell 0.2% on the day. Meanwhile, gold futures for December delivery on the COMEX exchange rose to $1,823.50 per ounce, up from $1,805.50 per ounce in the previous session. The gold price rise comes as investors become increasingly cautious about the stock market, particularly in the technology sector. Nvidia Corp., a leading developer of artificial intelligence chips, is set to release its earnings report on Wednesday, which is expected to provide insight into the company's performance and the broader technology sector. Nvidia's stock has been a key driver of the tech sector's recent gains, and any disappointment in the earnings report could have significant implications for the market. In the background, the Federal Reserve's monetary policy stance remains a key focus for investors. The central bank has been under pressure to cut interest rates in response to slowing economic growth, and a rate cut is seen as a possibility by some analysts. However, the Fed's next policy decision is due in December, and any rate cut would likely be seen as a positive for gold prices. Looking ahead, investors will be closely watching the release of the Federal Reserve's minutes and the US economic data reports scheduled for release this week. The gold price is likely to remain volatile in the near term, as investors weigh the prospects of a rate cut against growing stock market jitters.