Gold prices moved higher in Asian trading on Tuesday, building on strong gains from the previous session. Traders increased their expectations that the U.S. Federal Reserve will cut interest rates in December, a shift that continued to support demand for the metal.
Safe-haven buying also strengthened as markets waited for a series of important U.S. economic reports. Gold held firm even while the dollar remained steady, and other major metals advanced alongside it.
Spot gold rose 0.3% to $4,145.57 per ounce. February gold futures gained 0.2%, reaching $4,180.0 per ounce by 23:46 ET (04:46 GMT).
December rate-cut expectations surge
Market confidence in a December rate cut increased sharply after two Federal Reserve officials expressed support for easing next month.
According to CME FedWatch, traders now assign a 77.2% probability to a 25-basis-point cut during the December 9–10 meeting — up from 41.8% just one week earlier.
Lower interest rates generally support non-yielding assets like gold, since they reduce the relative appeal of fixed-income investments. Gold has already hit several record highs this year as the Fed cut rates in its last two meetings.
Geopolitical tensions between China and Japan also boosted safe-haven flows, while concerns over high government spending in advanced economies added further support.
Among other precious metals, spot platinum increased 0.5% to $1,570.65 per ounce, and spot silver climbed 0.8% to $51.5555 per ounce.
Copper futures on the London Metal Exchange rose 1.2% to $10,887.0 per tonne.
Key U.S. economic data on the way
Gains across the metals market were somewhat limited as traders awaited major U.S. economic data releases. Although the upcoming figures reflect September activity, they will likely be the final indicators available to the Fed before its December meeting.
Producer price inflation and retail sales numbers are due later on Tuesday. The Fed’s preferred inflation measure, the PCE price index, will follow on Wednesday.
Government officials also noted that inflation and labor data for October will not be released due to the prolonged government shutdown last month. This gap in data had earlier supported expectations that the Fed might hold rates steady in December, as policymakers would be forced to operate with limited information.
