Gold prices edged higher on Wednesday, holding above the critical $3,600-per-ounce level, buoyed by expectations of a U.S. interest rate cut this month, while key inflation reports due this week were also on investors' radar.
Spot gold was up 0.3% at $3,635.329 per ounce, as of 0101 GMT, after hitting a record high of $3,673.95 on Tuesday.
U.S. gold futures for December delivery eased 0.2% to $3,673.70.
"Sentiment is really bullish. There are several major factors driving gold prices right now. The primary is U.S. rate cut expectations," Capital.com financial market analyst Kyle Rodda said.
"The near-term outlook depends a lot on this inflation data. If it comes out a bit spicy, then rate cuts could come out of the curve marginally and spark a pullback in what's a technically overbought market."
The U.S. producer price inflation data, due at 1230 GMT, and the consumer price inflation reading on Thursday will be closely watched for more cues on the Federal Reserve's interest rate trajectory.
The U.S. economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, the government said on Tuesday, suggesting that job growth was already stalling before President Donald Trump's aggressive tariffs on imports.
U.S. nonfarm payroll data released last week also pointed to weakening labor market conditions, and sealed the case for a rate cut at the Fed's September policy meeting.
Markets are fully pricing in a 25-basis-point rate cut, while the likelihood of a larger 50-basis-point cut stands at around 6%, according to CME Group's FedWatch Tool.
Gold prices have gained 38% so far this year, following a 27% jump in 2024, bolstered by soft dollar, strong central bank accumulation, dovish monetary settings and heightened global uncertainty.
Non-yielding gold typically performs well in a low-interest-rate environment.
Elsewhere, spot silver rose 0.3% to $41 per ounce. Platinum gained 0.9% to $1,380.74 and palladium was flat at $1,148.57.
Source: Reuters
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...