Gold Advances Toward Six-Week High on Growing Fed Easing Bets

Gold climbed to around $4,220 per ounce on Wednesday, edging back toward a six-week high as expectations for further monetary easing by the Federal Reserve continued to support the market.

Fresh U.S. data showed a modest cooling in economic activity, strengthening the case for an interest-rate cut at next week’s Fed meeting, with markets now pricing in nearly a 90% probability of a move. Sentiment was further reinforced by expectations that White House economic adviser Kevin Hassett could be nominated to succeed Jerome Powell as Fed chair, adding to the dovish outlook.

Investors are now focused on the upcoming November ADP employment report and the delayed September PCE inflation data, both of which could provide additional clarity on the Fed’s rate trajectory.

Meanwhile, U.S. Treasury yields eased slightly after being lifted earlier by a global sell-off in government bonds, offering additional support to gold prices.