📈 Gold Edges Higher Ahead of Key U.S. Inflation Data
Gold prices ticked up on Friday, supported by a weaker U.S. dollar and firm expectations that the Federal Reserve will cut interest rates next week.
At 08:15 ET (13:15 GMT):
Spot Gold: $4,226.84/oz (+0.4%)
U.S. Gold Futures (Feb): $4,257.80/oz (+0.4%)
🔶 Fed Cut Bets Lift Bullion
The U.S. Dollar Index hovered near a five-week low, with markets pricing in an 88% chance of a 25 bps rate cut at the Fed’s December 9–10 meeting. A softer dollar makes gold more affordable for global buyers, boosting demand.
Signs of cooling in the U.S. labor market also strengthened rate-cut expectations — ADP data showed a 32,000 decline in private-sector jobs, the biggest drop in 2.5 years.
🔍 Focus Turns to PCE Inflation
Investors now await the release of the PCE price index, the Fed’s preferred inflation gauge. A softer reading could reinforce expectations of further easing in 2025.
Also due today:
U.S. Personal Income
Personal Spending
University of Michigan Consumer Sentiment (with updates on 1-yr & 5-yr inflation expectations)
These data releases are expected to guide the Fed’s policy outlook and may drive gold’s next move.
🔧 Copper Surges to Record High
Industrial metals mostly advanced, benefiting from the weaker dollar.
Silver Futures: +1.7% → $58.46/oz
Platinum Futures: –0.7% → $1,658.55/oz
Meanwhile, Copper hit fresh records:
LME Copper: +1.6% → $11,718.93/ton (new all-time high)
U.S. Copper Futures: +1.3% → $5.4407/lb
The rally comes amid shrinking LME warehouse inventories, falling steadily since July, and strong U.S. demand amid concerns of 2026 tariffs on non-ferrous metal imports. Supply tightness continues to fuel price momentum.
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