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Gold flat as investors await US data for rate-cut signals

Gold flat as investors await US data for rate-cut signals

By Swedan Margen

Fashion

US rate futures are pricing in an 89% chance of a rate cut in December, according to the CME’s FedWatch tool

Gold prices were little changed on Wednesday (Dec 3) after a 1 per cent drop in the previous session, as a rebound in equities and firm Treasury yields kept pressure on the metal while investors awaited key US data for clues on potential rate cuts later this week.

Spot gold held its ground at US$4,207.43 per ounce, as at 8.28 am.

US gold futures for December delivery were up 0.5 per cent at US$4,239.50 per ounce.

US rate futures are pricing in an 89 per cent chance of a rate cut in December, according to the CME’s FedWatch tool.

Recent US data emerging signalled a slight economic slowdown, driving up bets for a US interest rate cut by the Federal Reserve at its Dec 10 meeting.

Non-yielding gold tends to perform well in low-interest-rate environments.

Investors are also focused on key data scheduled for this week, including November ADP employment figures on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge, due on Friday.

Meanwhile, US President Donald Trump said that he plans to announce his pick to replace Jerome Powell as Fed chair early next year.

US Treasury yields were flat to modestly lower on Tuesday, pulling back from highs seen in the previous session while global shares rose late on Tuesday and both cryptocurrencies and global government bonds stabilised after the previous day’s sell-off.

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Non-yielding gold tends to perform well in low-interest-rate environments.

Central banks bought 53 tonnes of gold in October, up 36 per cent month-on-month and the largest monthly net demand since the start of 2025, according to the World Gold Council.

Elsewhere, silver fell 0.2 per cent to US$58.32 per ounce, platinum lost 0.4 per cent to US$1,631.10, while palladium lost 0.6 per cent to US$1,458.83. REUTERS

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Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

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Gold flat as investors await US data for rate-cut signals | Grazia British