Gold prices touch $4,418.79 as dollar slips and Fed rate hike odds hit 60%
Spot gold rose 0.3% to $4,418.79 per ounce as the U.S. dollar index declined 0.3%, with traders currently betting a 60% chance on a Federal Reserve rate increase next week.
Gold prices advanced on Tuesday after the U.S. dollar weakened. Spot gold settled at $4,418.79 per ounce, marking a 0.3% gain in the session. U.S. gold futures for December delivery were slightly lower at $4,464.80. The drop in greenback strength made metals more accessible to investors holding foreign currencies. Market attention shifted toward upcoming inflation data. The Producer Price Index report is scheduled for Thursday, and Consumer Price Index data arrives on Friday. Past job growth figures suggested gold prices fell earlier in the month when acceleration offset steady unemployment numbers at 4.1%. According to the CME FedWatch Tool, traders view a 60% probability of a rate hike during next week's Federal Reserve meeting. Persistent energy risks also weigh on inflation outlooks. Deutsche Bank anticipates the European Central Bank will raise rates by 25 basis points in December. Geopolitical tension remains relevant; Iranian officials warned of retaliation against U.S. attacks on Gulf infrastructure, specifically targeting oil and gas assets. Other precious metals followed similar gains. Silver added 0.3% to close at $66.34 per ounce. Platinum increased 0.6% to reach $1,836.97, while palladium climbed 0.9% in the trading session.
