Gold Holds Near Two-Week High Ahead of US Inflation Data

10 Dec 2024 , 08:49 AM

As investors awaited important U.S. inflation data, which is expected later this week, for additional clues about the Federal Reserve’s interest rate outlook, gold prices stayed basically constant on Tuesday, remaining close to a two-week high achieved in the previous session.

Spot gold remained stable at $2,660.82 an ounce. At $2,683.60, U.S. gold futures were stable.

After a six-month break, China’s central bank resumed purchasing gold on Monday, helping it to a two-week high.

Following last week’s better-than-expected payrolls report, traders’ attention is now on the November U.S. consumer price index, which is scheduled for release on Wednesday. A quarter-point rate cut at the Fed’s December 17–18 meeting is now priced into the market at an 85.8% possibility, up from 68% prior to the jobs report.

The New York Federal Reserve said on Monday that last month, despite marking up hopes that their personal financial conditions would significantly improve, U.S. consumers were preparing for greater levels of inflation in the years to come.

Investors are also keeping an eye on Thursday’s European Central Bank policy meeting, where a quarter-point rate cut is anticipated.

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