U.S. inflation data met expectations, boosting market expectations for a rate cut by the Federal Reserve (Fed) next week, which led to a rise in gold prices. Spot gold increased by 0.9%, closing at $2,717.29 per ounce, nearing its historical high. The U.S. Consumer Price Index (CPI) for November rose 2.7% year-over-year, in line with expectations.

The market is focused on the upcoming Producer Price Index (PPI) data to further guide the Fed's monetary policy direction. The FedWatch tool shows that traders expect a 95% probability of a 25 basis point rate cut at the Fed’s December meeting.

Gold Prices Rise as U.S. Inflation Data Meets Expectations, Boosting Fed Rate Cut Hopes

Dec 12 2024