Gold prices remained mostly steady during Asian trading on Wednesday. Investors paused activity as they waited for key U.S. economic data and next week’s Federal Reserve meeting, where a rate cut is widely expected.
Spot gold traded flat at $4,204.55 an ounce at 02:45 ET (07:45 GMT). U.S. gold futures rose 0.4% to $4,235.75. Earlier in the week, the metal reached a six-week high of $4,264.29 per ounce.
Rate-cut expectations and dollar weakness boost gold
Markets now assign about a 90% probability of a rate cut at the Fed’s December 9–10 meeting, according to CME’s FedWatch tool.
This dovish outlook pushed the U.S. dollar lower. The U.S. Dollar Index fell toward its weakest level since mid-November, making gold more attractive to international buyers.
Recent U.S. data has also shown signs of cooling. This has strengthened expectations for upcoming rate cuts. Traders are now waiting for two key reports: the ADP National Employment Report for November, due Wednesday, and the delayed September Personal Consumption Expenditures (PCE) Price Index, set for release on Friday. Both indicators are closely watched by the Federal Reserve.
Fed leadership speculation adds to the narrative
Markets are also discussing a possible leadership change at the Fed. Reports indicate that Kevin Hassett — a White House economic adviser who supports lower interest rates — is a leading candidate to replace Jerome Powell.
This potential shift has increased expectations for a more dovish policy stance, which continues to support gold’s safe-haven demand.
Metal markets stay quiet
Trading in other precious and industrial metals remained subdued on Wednesday. Investors preferred to wait for the Fed’s decision before making new moves.
Silver futures held steady at $58.67 per ounce, slightly below record highs of $59.65. Platinum futures slipped 1.2% to $1,663.60 per ounce.
Copper prices were also mixed. Benchmark copper on the London Metal Exchange rose 0.5% to $11,255.20 per ton, while U.S. copper futures gained 0.7% to $5.29 per pound.
