WASHINGTON (dpa-AFX) - Gold prices edged higher on Wednesday, with expectations of a U.S. Federal Reserve interest rate cut gaining more weight amid recent economic releases as well as supporting comments by a few Fed officials.
Front Month Comex Gold for December delivery climbed by $25.20 (or 0.61%) to $4,165.20 per troy ounce.
Front Month Comex Silver for December delivery skyrocketed by $1.9510 cents (or 3.83%) to $52.916 per troy ounce.
Today, U.S. Labor Department data revealed that the initial jobless claims in the U.S. fell by 6,000 from the previous week to 216,000 for the period ending November 22.
Meanwhile, continuing jobless claims increased to 1,960,000 for the week ending November 15 from 1,953,000 in the previous week.
Commerce Department data showed that new orders for U.S.-manufactured durable goods rose 0.5% month-over-month in September.
Yesterday's economic data releases showed that the retail sales rose 0.2% month-over-month in September, slower than the 0.6% growth in August, and that the producer prices rose by 0.3% in September (matching forecasts) after a 0.1% dip in August.
Yesterday's ADP report showed that private employers eliminated an average of 13,500 jobs per week for the four weeks ending November 8, an increase from the 2,500 weekly decline in the previous period.
The Conference Board's Consumer Confidence Index fell to 88.7 from a revised 95.5 (from 94.6) halting the previous recovery.
The data releases coming after the end of shutdown have been indicating a slowdown in consumer momentum. implying restricted spending.
In the recent days, New York Fed President John Williams, Fed Governor Christopher Waller, and San Francisco Fed President Mary Daly have voiced their preference for lowering rates further, reinforcing expectations for a rate cut.
So far, the central bank has reduced the benchmark rate by 25 basis points in both September and October.
CME Group's FedWatch Tool is currently indicating that investors are betting on an 84.9% chance of a 25-basis-point interest rate cut at the Federal Reserve's December 9-10 meeting.
A further boost to rate cut expectations came from a Bloomberg report that said White House National Economic Council Director Kevin Hassett has emerged as the frontrunner to be the next Fed Chair.
Hassett's economic perspectives broadly align with that of U.S. President Donald Trump who is in favor of a 'low-interest-rate' regime.
In an interview with Fox News on November 20, Hassett had remarked that he would be cutting rates immediately if he were the Chair, as he felt that the data suggests it was necessary.
In the bond market, the 10-year yield briefly slipped below 4% for the first time in a month.
The Trump administration has come up with a new, shorter 10-point draft to end the Russia-Ukraine war after the previous 28-point peace plan received strong criticism for being tilted towards Russia.
Ukraine President Volodymyr Zelenskyy stated that he was ready to support the new plan and was prepared to discuss some of its 'sensitive elements' with Trump and Ukraine's allies in Europe.
As an end to the war would reduce safe-haven demand, these developments capped yellow metal's gains today.
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