Market News

Pedro Goncalves · Finance Reporter, Yahoo Finance UK

Gold (GC=F)

Gold prices steadied above the $4,200 threshold on Wednesday morning, with the market pausing after recent gains as investors looked ahead to a series of US economic releases that could influence the Federal Reserve’s next policy move.

Gold futures climbed 0.4% to $4,236.90 per ounce, while spot gold retreated 0.3% to $4,206.49 an ounce at the time of writing.

"I think buyers remain keen on gold given the interest rate outlook, but they are perhaps waiting for more evidence of economic softening which may give a further signal to the Fed that a rate cut this month may be warranted," said KCM Trade chief market analyst Tim Waterer.

According to the CME’s FedWatch tool, US rate futures are now pricing in an 88% probability of a rate cut next week, up from 85% a week earlier. Lower interest rates typically bolster demand for non-yielding assets such as gold.

Market participants will scrutinise Wednesday’s November ADP employment report and Friday’s release of the delayed September Personal Consumption Expenditures Index, the Fed’s preferred inflation measure, for further clues on the economic trajectory.

Meanwhile, persistent geopolitical tensions, including the prolonged Russia-Ukraine war and the risk that other regional flashpoints could escalate, continue to provide support for the safe-haven metal, helping to limit the downside despite recent volatility.