Gold Extends Rally on Fed Rate Cut Hopes

12 Dec 2024 , 09:28 AM

Following the release of U.S. inflation data that was in line with forecasts, gold pushed higher for a fifth consecutive session on Thursday, hovering close to a top that has been there for more than two weeks.

Spot gold was up almost 0.1% at $2,719.79 an ounce. At $2,755.40, U.S. gold futures were stable.

Despite November’s largest increase in U.S. consumer prices in seven months, the Fed is still likely to cut interest rates for the third time next week due to a softening labour market.

According to CME’s FedWatch Tool, traders estimate a 98.6% chance of a 25 basis point drop at the Fed’s meeting on December 17–18.

In order to gain insight into the Fed’s monetary policy for 2025, attention will now turn to the U.S. Producer Price Index data, which is scheduled for release at 1330 GMT.

Meanwhile, with inflation in the euro zone almost back at its target and the economy struggling, the European Central Bank is almost set to drop interest rates once again on Thursday and signal another easing in 2025.

For feedback and suggestions, write to us at [e-mail]