Gold Rises as U.S. Data Bolsters Rates
Gold rose for a fourth day after a key U.S. inflation report bolstered expectations for a Federal Reserve rate cut when policymakers meet next week.
Bullion traded above $2,720 an ounce — near its highest in more than two weeks — after consumer price index data on Wednesday rose in line with expectations. The report reinforced bets for a 25-basis-point cut at the Fed’s final meeting of the year, with swaps traders now largely pricing in the move. Lower borrowing costs typically help bullion, as it pays no interest.
Gold has risen by almost a third this year, hitting a string of records and putting it on pace for its strongest finish since 1979. The precious metal has been helped by the Fed’s shift to easing, safe-haven demand and continued central bank buying. The People’s Bank of China reported on Saturday that it resumed buying in November after a six-month pause, giving the metal a boost after prices eased following Donald Trump’s victory in the U.S. election.
Gold for immediate delivery was little changed at $2,720.37 an ounce at 8:11 a.m. in Singapore, after rising 0.9% on Wednesday. The commodity’s latest record was set in late October, when prices peaked just above $2,790. The Bloomberg Dollar Spot Index fell 0.2%. Silver was flat at just below $32 an ounce, while platinum and palladium both rose.
Source: Bloomberg
