{"id":121202,"date":"2025-11-26T15:03:00","date_gmt":"2025-11-26T11:03:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=121202"},"modified":"2025-11-26T15:03:04","modified_gmt":"2025-11-26T11:03:04","slug":"gold-rallies-in-asia-as-weak-u-s-data-boosts-december-fed-rate-cut-expectations","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/gold-rallies-in-asia-as-weak-u-s-data-boosts-december-fed-rate-cut-expectations\/11\/26\/market-updates\/","title":{"rendered":"Gold Rallies in Asia as Weak U.S. Data Boosts December Fed Rate-Cut Expectations"},"content":{"rendered":"\n

<\/p>\n\n\n\n

Gold prices climbed in Asian trading on Wednesday, supported by a softer U.S. dollar and growing conviction that the Federal Reserve will cut interest rates in December. Haven demand also remained firm despite a broader risk-on rally across global markets.<\/p>\n\n\n\n

Spot gold rose 0.9% to $4,166.13<\/strong> an ounce, while February gold futures gained 0.9% to $4,201.15<\/strong> by 00:24 ET (05:24 GMT).<\/p>\n\n\n\n

Weak U.S. Data Fuels Rate-Cut Momentum<\/strong><\/h3>\n\n\n\n

Gold extended its sharp gains from Tuesday after a series of middling U.S. economic readings strengthened the case for further monetary easing.<\/p>\n\n\n\n

    \n
  • Retail sales<\/strong> grew only marginally in September<\/li>\n\n\n\n
  • Core producer inflation<\/strong> cooled more than expected<\/li>\n<\/ul>\n\n\n\n

    These September figures will be among the final economic indicators<\/strong> available to the Fed before its December 9\u201310 policy meeting, as the prolonged government shutdown is expected to delay the release of October labor and inflation data indefinitely.<\/p>\n\n\n\n

    Separately, the PCE price index<\/strong>\u2014the Fed\u2019s preferred gauge of inflation\u2014has been rescheduled for release on December 5<\/strong>.<\/p>\n\n\n\n

    With two Fed officials publicly supporting near-term easing, markets have sharply increased their expectations for a December cut. CME\u2019s FedWatch Tool now shows an 80.7% probability<\/strong> of a 25-basis-point<\/strong> reduction, up from 42.4%<\/strong> a week earlier.<\/p>\n\n\n\n

    Haven Demand Stays Firm Amid Geopolitical Tensions<\/strong><\/h3>\n\n\n\n

    Safe-haven flows into gold remained robust amid:<\/p>\n\n\n\n

      \n
    • ongoing tensions between Japan and China<\/strong><\/li>\n\n\n\n
    • uncertainty surrounding a potential Russia-Ukraine ceasefire<\/strong><\/li>\n\n\n\n
    • concerns over stretched fiscal spending<\/strong> in major economies<\/li>\n<\/ul>\n\n\n\n

      Broad Metals Complex Gains<\/strong><\/h3>\n\n\n\n

      Other precious metals moved higher as rate-cut bets intensified:<\/p>\n\n\n\n

        \n
      • Spot silver<\/strong> rose 1% to $52.0215\/oz<\/strong>, nearing record highs<\/li>\n\n\n\n
      • Spot platinum<\/strong> increased 0.2% to $1,559.90\/oz<\/strong><\/li>\n<\/ul>\n\n\n\n

        In industrial metals, LME copper futures<\/strong> climbed 0.3% to $10,992.90<\/strong> per tonne after Chilean producer Codelco<\/strong> signaled sharper-than-expected price increases for Chinese buyers.<\/p>\n\n\n\n

        Lower interest rates generally benefit non-yielding assets<\/strong> like gold by reducing the attractiveness of rate-sensitive assets such as U.S. Treasuries.<\/p>\n\n\n\n

        Dollar Weakness Adds Support<\/strong><\/h3>\n\n\n\n

        Gold and broader metals also benefitted from dollar softness, with the U.S. currency retreating from recent six-month highs on expectations of lower interest rates.<\/p>\n\n\n\n

        The Dollar Index<\/strong> has fallen 0.5%<\/strong> from its recent peak, making dollar-priced commodities cheaper for global buyers and providing additional upside momentum for gold.<\/p>\n\n\n\n

        <\/p>\n","protected":false},"excerpt":{"rendered":"

        Gold prices climbed in Asian trading on Wednesday, supported by a softer U.S. dollar and growing conviction that the Federal Reserve will cut interest rates in December. Haven demand also remained firm despite a broader risk-on rally across global markets. Spot gold rose 0.9% to $4,166.13 an ounce, while February gold futures gained 0.9% to …<\/p>\n","protected":false},"author":9,"featured_media":116449,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[7770,6874],"class_list":["post-121202","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates","tag-fomc-minutes","tag-gold"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/121202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=121202"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/121202\/revisions"}],"predecessor-version":[{"id":121203,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/121202\/revisions\/121203"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/116449"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=121202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=121202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=121202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}