Gold prices were little changed in Asian trading on Wednesday, with market participants largely in wait-and-see mode before a series of important U.S. economic releases and next week’s Federal Reserve meeting, where a rate cut is widely expected.
By 02:45 ET (07:45 GMT), spot gold was essentially flat at $4,204.55 per ounce, while U.S. gold futures rose 0.4% to $4,235.75. Earlier in the week, bullion touched a six-week high of $4,264.29 per ounce.
Expectations of Fed easing and softer dollar underpin gold
According to CME’s FedWatch tool, traders now see close to a 90% chance that the Fed will lower interest rates at its December 9–10 meeting.
This dovish outlook has pressured the U.S. dollar toward its weakest levels since mid-November, making gold more appealing to international buyers.
Recent U.S. data has also shown signs of cooling, reinforcing the view that policymakers may soon need to ease. Investors are awaiting Wednesday’s ADP private-sector jobs report and Friday’s delayed September PCE inflation data — both key inputs for the Fed.
Speculation over Fed leadership shift adds fuel to dovish sentiment
A potential shake-up at the central bank has added another layer to the market narrative. Reports indicate that Kevin Hassett — a White House economic adviser known for favoring lower interest rates — is a leading contender to replace Jerome Powell as Fed Chair.
The prospect of a more rate-friendly leadership has strengthened gold’s appeal as a defensive asset.
Other metals muted as caution prevails
Trading across the metals complex remained subdued, with most investors staying on the sidelines ahead of next week’s policy decision.
Silver futures were steady at $58.67 per ounce, hovering just below their record of $59.65.
Platinum futures slipped 1.2% to $1,663.60 per ounce.
Base metals saw slight gains: benchmark copper on the London Metal Exchange advanced 0.5% to $11,255.20 a tonne, while U.S. copper futures rose 0.7% to $5.29 a pound.