Gold Holds Steady Ahead of Key U.S. Data and Fed Meeting as Rate-Cut Bets Strengthen

Gold prices were little changed in Asian trade on Wednesday as investors remained cautious ahead of a wave of key U.S. economic releases and next week’s Federal Reserve meeting, where markets broadly expect an interest rate cut.

By 02:45 ET (07:45 GMT):

• Spot gold traded flat at $4,204.55 an ounce
• U.S. gold futures rose 0.4% to $4,235.75

The metal is trading just below the six-week high of $4,264.29/oz reached earlier this week.

Fed-Cut Bets, Weaker Dollar Boost Bullion Appeal

Markets now assign roughly a 90% probability that the Fed will cut rates by 25 basis points at the December 9–10 policy meeting, according to the CME FedWatch Tool.

This aggressive pricing has pushed the U.S. Dollar Index toward its weakest level since mid-November, making gold more appealing for non-U.S. buyers and supporting safe-haven demand.

A string of softer U.S. economic indicators has reinforced speculation that the Fed may need to ease policy. Traders are now awaiting two key releases:

• ADP National Employment Report (November) — due Wednesday
• PCE Price Index for September — delayed due to the government shutdown, now set for Friday

Both are closely watched by the Fed as gauges of labor-market health and underlying inflation pressures.

Speculation About New Fed Chair Adds to Dovish Tone

Markets are also increasingly focused on the possibility of a leadership change at the Federal Reserve.

Reports suggest Kevin Hassett, a White House economic adviser known for advocating lower interest rates, is emerging as a frontrunner to replace Chair Jerome Powell.

The potential shift has added to expectations of a more accommodative policy stance, providing another tailwind for gold.

Metal Markets Stay Subdued

Trading across other precious and industrial metals was muted as investors awaited clearer signals from U.S. data and next week’s Fed decision:

• Silver futures were flat at $58.67/oz, hovering just below the record $59.65
• Platinum futures slipped 1.2% to $1,663.60/oz
• LME copper futures rose 0.5% to $11,255.20/ton
• U.S. copper futures gained 0.7% to $5.29/lb