Gold Rises as Dollar Weakens

27 Nov 2024 , 01:23 PM

Wednesday saw a little increase in gold prices as the U.S. dollar depreciated and investors turned their attention to important inflation data from the largest economy in the world for clues about the anticipated magnitude of a rate decrease by the Federal Reserve next month.

Spot gold increased 0.3% to $2,639.30 an ounce. On Tuesday, the price of bullion fell more than a week.

At $2,639.40, U.S. gold futures increased 0.7%.

Gold’s attraction for holders of other currencies increased when the dollar index fell 0.1%. On Tuesday, the greenback hit a low of almost one week.

On Tuesday, investors took in a few economic data points that showed the economy was still doing well.

Now, traders will keep a careful eye on the core PCE numbers, the first adjustment of GDP, and the initial unemployment claims, which are scheduled to be released later today.

According to the CME group’s FedWatch tool, markets presently perceive a 63% possibility of a 25 basis point rate cut by the Fed in December.

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