Gold prices continued to climb in Asian trade on Tuesday, building on strong overnight momentum as traders increasingly priced in the likelihood of a U.S. Federal Reserve interest rate cut in December. The precious metal rose despite a steady U.S. dollar, supported by heightened safe-haven demand ahead of key U.S. economic data releases.
Spot gold inched up 0.3% to $4,145.57 per ounce, while February gold futures added 0.2% to reach $4,180.00. The shift in sentiment followed dovish comments from two Federal Reserve officials, which prompted markets to sharply revise expectations for a December policy move. According to the CME FedWatch tool, traders now see a 77.2% probability of a 25-basis-point rate cut during the December 9–10 meeting, up from just 41.8% a week earlier.
A potential rate cut typically benefits gold and other non-yielding assets by reducing the appeal of interest-bearing investments. Gold has already hit multiple record highs this year, supported by the Fed’s recent decisions to ease policy during its last two meetings. Investors also continue to favor gold amid rising geopolitical risks, including escalating tensions between China and Japan and persistent concerns about ballooning fiscal deficits across developed economies.
Other precious metals tracked gold’s upward movement, with platinum rising 0.5% to $1,570.65 per ounce and silver gaining 0.8% to $51.5555. Base metals also advanced, with benchmark copper on the London Metal Exchange jumping 1.2% to $10,887 per tonne.
Market participants are now awaiting a series of U.S. economic indicators expected this week, including producer price inflation and retail sales due Tuesday, followed by the Fed’s preferred inflation metric—the PCE price index—scheduled for Wednesday. These will be the most recent datasets available ahead of the December meeting, as officials confirmed that October’s inflation and labor statistics will not be released due to a prolonged government shutdown. This earlier uncertainty had fueled expectations of a potential rate hold, but renewed clarity on September data has shifted momentum toward a cut.


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