WASHINGTON (dpa-AFX) - Gold prices edged higher on Wednesday, with traders shying away from taking risky moves as they await key official economic releases to get better insights on the economy as well as to assess the central bank's policy direction.
Front Month Comex Gold for November delivery rose by $16.40 (or 0.40%) to $4,077.70 per troy ounce.
Front Month Comex Silver for November delivery advanced by 34.00 cents (or 0.67%) to $50.790 per troy ounce.
With the U.S. government limping back to activity after the 43-day shutdown ended last week, delayed economic data has begun to be released.
On the economic front, the Mortgage Bankers Association of America 's Purchase Index decreased to 168.70 points in the week ending November 14 from 172.70 points in the previous week.
The Mortgage Market Index decreased to 316.90 points in the week ending November 14 from 334.20 points in the previous week.
On October 29 (during the 43-day U.S. government shutdown), for the second time in 2025, the U.S. Federal Reserve lowered interest rates by 25 basis points to the current 3.75% to 4.00% range.
Traders are awaiting the minutes of that Federal Open Market Committee meeting to get cues about the Fed's analysis of the economy and to predict the likelihood of further rate lowering in December. Of note, Fed Chair Jerome Powell cautioned not to expect that another rate cut is a 'foregone conclusion.'
CME Group's FedWatch Tool is currently indicating that investors are betting on a 36.2% chance of a 25-basis-point interest rate cut at the next Federal Reserve's meeting.
The U.S. Labor Department is scheduled to release its job data for September on November 20.
However, the upcoming FOMC meeting may proceed without inflation numbers on hand.
The tariffs imposed by U.S. President Donald Trump on U.S. trading partners, are facing political resistance, legal scrutiny by the U.S. Supreme Court, and criticism by economists over doubts about their efficacy.
As gold prices gain when the interest rates are lower and during times of uncertainty, the present turmoil in the U.S. is supporting gold on the upside even as expectations for another rate cut are diminishing.
Economists are of the view that with piled up national debt of over $38 trillion and the economy sandwiched between the effects of both the tariffs and the recent shutdown, the Fed's decision on interest rates could decide the trajectory of gold prices in the coming weeks.
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