Gold prices were little changed during Wednesday’s Asian session, with investors opting for caution ahead of several major U.S. economic releases and the Federal Reserve’s meeting next week, where a rate cut is widely anticipated.
Spot gold was flat at $4,204.55 an ounce at 02:45 ET (07:45 GMT), while U.S. gold futures added 0.4% to $4,235.75. Earlier this week, bullion touched its highest level in six weeks at $4,264.29.
Dovish Fed expectations and weaker dollar underpin gold
Expectations for easier monetary policy remain the primary driver of sentiment. CME’s FedWatch tool shows markets assigning nearly a 90% chance of a rate cut when the Fed meets on December 9–10.
The softening policy outlook has pushed the U.S. dollar toward its weakest point since mid-November, making gold cheaper for overseas buyers and supporting demand.
Recent U.S. data has also pointed to cooling economic momentum, strengthening the case for a policy shift. Traders are now waiting for two key releases: Wednesday’s ADP private payrolls report and Friday’s delayed September PCE inflation print — both crucial indicators for Fed officials.
Speculation grows over potential Fed leadership change
Adding to the dovish narrative is talk of a possible change at the top of the Fed. Reports suggest that White House economic adviser Kevin Hassett, known for favoring lower interest rates, has emerged as a leading candidate to replace current Chair Jerome Powell.
The possibility of a leadership transition toward a more rate-friendly figure has boosted gold’s safe-haven appeal.
Other metals see muted moves
Trading was restrained across precious and industrial metals as markets remained wary ahead of next week’s Fed decision.
Silver futures were steady at $58.67 an ounce, slightly below the record $59.65 level.
Platinum futures slipped 1.2% to $1,663.60 an ounce.
Copper saw modest gains, with London Metal Exchange benchmark futures up 0.5% at $11,255.20 a tonne, while U.S. copper futures rose 0.7% to $5.29 a pound.
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