Gold prices experienced stability during Asian trading on Wednesday, remaining largely unchanged as investors anticipated key U.S. economic data and a Federal Reserve meeting scheduled for next week, where a rate cut is widely expected. Spot gold was flat at $4,204.55 per ounce, while U.S. Gold Futures rose by 0.4% to $4,235.75. Earlier in the week, the price of the yellow metal reached a six-week high of $4,264.29 per ounce.
The market is currently pricing in a 90% probability of a rate cut during the Fed’s meeting on December 9-10, as indicated by CME’s FedWatch tool. A dovish outlook from the Federal Reserve has contributed to a decrease in the U.S. dollar, which has approached its lowest levels since mid-November, thereby increasing gold’s appeal for overseas buyers.
Additionally, recent soft U.S. economic data has fueled speculation regarding potential rate cuts. Investors are keenly awaiting the private-sector ADP National Employment Report for November and the postponed September Personal Consumption Expenditures Price Index (PCE), both of which are critical indicators for the Fed’s decision-making.
In addition, the broader metal markets displayed subdued activity as investors took a cautious approach ahead of the Fed’s upcoming decision. Silver Futures remained unchanged at $58.67 per ounce, slightly below record highs, while Platinum Futures saw a decline of 1.2%, settling at $1,663.60 per ounce. On the other hand, copper markets experienced modest increases, with Benchmark Copper Futures on the London Metal Exchange rising 0.5% to $11,255.20 per ton and U.S. Copper Futures climbing 0.7% to $5.29 per pound.
