Gold futures on the COMEX division experienced a 0.53 percent drop, concluding the most active December contract at $1,988.60 per ounce, amid the ongoing ascent of U.S. Treasury yields. This trend was echoed in silver and platinum futures for December and January delivery, with both witnessing price downturns.
Market Vigilance on Federal Reserve Speeches
The financial market is closely monitoring speeches from Federal Reserve officials, with Chairman Jerome Powell scheduled to deliver one on Thursday, in hopes of gaining insights into potential U.S. rate cuts. Despite the anticipation, traders are projecting that the upcoming December Federal Open Market Committee meeting will maintain the current rates.
Federal Reserve Governor Lisa Cook, in her Tuesday speech at Duke University, acknowledged the resilience of the banking sector following previous bank failures. She also underscored potential risks associated with significant liquidity mismatches in nonbank financial institutions amidst tightening financial conditions and a slowdown in economic activity.
Market Consensus on Banking Sector Stability
Traders’ consensus suggests that the banking sector has stabilized, despite past bank failures. This stability is anticipated to play a pivotal role in the Federal Reserve’s decision to retain current rates during the December meeting. The market’s focus remains firmly on forthcoming speeches by Federal Reserve officials for additional insights into U.S. rate policy.
