Gold rises for fifth day as US data lifts Fed rate-cut bets
Dec 12 (Reuters) -Gold nudged higher for a fifth straight session on Thursday to hover near a more than two-week peak, supported by increased expectations of an interest rate cut from the Federal Reserve next week after U.S. inflation data came in line with forecast.
FUNDAMENTALS
* Spot gold XAU= was up about 0.1% at $2,719.79 per ounce, as of 0035 GMT. U.S. gold futures GCv1 steadied at $2,755.40.
* U.S. consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Fed from cutting interest rates for a third time next week against the backdrop of a cooling labor market.
* Traders predict a 98.6% chance of a 25-basis-point cut at the Fed's Dec. 17-18 meeting, CME's FedWatch Tool showed.
* Focus now shifts to U.S. Producer Price Index data, due for release at 1330 GMT, for insights into Fed's monetary policy for 2025.
* Meanwhile, the European Central Bank is all but certain to cut interest rates again on Thursday and signal further easing in 2025 as inflation in the euro zone is nearly back at its target and the economy is faltering.
* The bullion is seen as a safe investment during economic and geopolitical turmoil and thrives in a low-interest-rate environment.
* Elsewhere, the United Nations General Assembly overwhelmingly voted on Wednesday to demand an immediate, unconditional, and permanent ceasefire between Israel and Palestinian militants Hamas in the Gaza Strip and the immediate release of all hostages.
* Citi said in a note that gold and silver markets are set to resume gradual uptrend over 3-12 months, reaching $3,000/oz and $36/oz respectively.
* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.30% to 873.38 tonnes on Wednesday from 870.79 tonnes on Tuesday.
* Spot silver XAG= added 0.1% to $31.94 per ounce, platinum XPT= gained 0.4% to $943.10 and palladium XPD= rose 0.5% to $986.25.
DATA/EVENTS (GMT)
1315 EU ECB Refinancing Rate Dec
1315 EU ECB Deposit Rate Dec
1330 US Initial Jobless Clm 7 Dec, w/e
1330 US PPI Machine Manuf'ing Nov
Reporting by Rahul Paswan; Editing by Sherry Jacob-Phillips
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
