Gold Rises for 3rd Session
Gold rose toward $2,700 per ounce on Wednesday, gaining traction to extend its two-day rally after the lack of upside surprises for US inflation consolidated bets of an incoming rate cut by the Fed.
Headline inflation inched higher to 2.7% in November, as expected by markets, and annual core inflation remained unchanged at 3.3%. Consequently, rate traders increased their positions that reflect a 25bps rate cut by the Fed next week.
Still, lingering concerns that price growth may remain stubborn next year limited a further increase, as annual services inflation, including key gauges like shelter, remained firmly above the 4.5% mark. In turn, bets of dovish monetary policy elsewhere also supported gold prices by reducing the opportunity cost of holding bullion.
The ECB, SNB, and BoC are due to cut rates. Additionally, the PBoC resumed gold purchases after a six-month pause and pledged to shift its monetary policy stance to be more accommodative next year.
Sumber : Trading Economics
