Gold flat as investors await US data for rate-cut signals

Gold prices were little changed on Wednesday after a 1% drop in the previous session, as a rebound in equities and firm Treasury yields kept pressure on the metal while investors awaited key U.S. data for clues on potential rate cuts later this week.

FUNDAMENTALS

* Spot gold held its ground at $4,207.43 per ounce, as of 0028 GMT.

* U.S. gold futures for December delivery were up 0.5% at $4,239.50 per ounce.

* U.S. rate futures are pricing in an 89% chance of a rate cut in December, according to the CME’s FedWatch tool.

* Recent U.S. data emerging signalled a slight economic slowdown, driving up bets for a U.S. interest rate cut by the Federal Reserve at its December 10 meeting.

* Non-yielding gold tends to perform well in low-interest-rate environments.

* Investors are also focused on key data scheduled for this week, including November ADP employment figures on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge, due on Friday.

* Meanwhile, U.S. President Donald Trump said he plans to announce his pick to replace Jerome Powell as Fed chair early next year.

* U.S. Treasury yields were flat to modestly lower on Tuesday, pulling back from highs seen in the previous session while global shares rose late on Tuesday and both cryptocurrencies and global government bonds stabilised after the previous day’s selloff.

* Central banks bought 53 tons of gold in October, up 36% month-on-month and the largest monthly net demand since the start of 2025, according to the World Gold Council.

* Elsewhere, silver fell 0.2% to $58.32 per ounce, platinum lost 0.4% to $1,631.10, while palladium lost 0.6% to $1,458.83.

DATA/EVENTS (GMT)

0145 China RatingDog Services PMI November

0850 France HCOB – Services, Composite PMI November

0855 Germany HCOB Services, Composite Final PMI November

0900 EU HCOB Services, Composite Final PMI November

0930 UK S&P GLOBAL PMI: COMPOSITE – OUTPUT November

0930 UK Reserve Assets Total November

1330 US Import Prices YY September

1415 US Industrial Production MM September

1445 US S&P Global Comp, Svcs PMI Final November

1500 US ISM N-Mfg PMI November.