Gold prices drop amid waning rate cut bets; central bank demand remains

Gold prices have declined for the fourth consecutive trading session, driven by diminishing expectations that the Federal Reserve will implement further interest rate cuts this year. The market sentiment reflects a reassessment of monetary policy outlook, impacting investor confidence in gold as a safe-haven asset.

Gold prices fluctuated amid a decline in various asset classes, including equities and cryptocurrencies, driven by diminishing expectations for interest rate cuts by the U.S. Federal Reserve and concerns surrounding technology sector earnings. This uncertainty has contributed to a negative sentiment in the markets, affecting investor confidence and leading to a cautious outlook for gold and other assets.

Canada's housing market showed signs of recovery in October, with both sales and prices increasing. This resurgence is attributed to recent rate cuts by the central bank, which have encouraged potential buyers to enter the market after a period of hesitation. The positive trend indicates a shift in consumer confidence and a potential stabilization in the housing sector.

Japan's economy has contracted for the first time in six quarters, with real gross domestic product shrinking by 0.4% on a quarter-over-quarter basis. This decline raises concerns about the economic outlook and complicates the timeline for the central bank's next interest-rate hike.

The Taiwan dollar has reversed its largest gain in nearly three weeks, as concerns over equity outflows have overshadowed expectations for the currency's strengthening. The central bank's commitment to avoid manipulating exchange rates has not been enough to bolster confidence in the currency amid these outflows.