Gold price today: Gold rate rises as US dollar slips

Gold prices rebounded on Wednesday, after hitting a more than one-week low in the previous session, as the dollar weakened, while traders awaited key inflation data to gain insights into the Federal Reserve's potential path for rate cuts, as per a report.

Spot gold rose 1 per cent at $2,656.30 per ounce as of 1400 GMT. US gold futures rose 1.2 per cent to $2,653.10, Reuters reported.

Gold registered its deepest one-day decline in more than five months on Monday, and hit its lowest since November 18 in the previous session, as safe-haven demand for the metal softened after Israel agreed to a ceasefire deal with Lebanon.


"The moderating U.S. dollar is helping gold extend its slight recovery following the steep declines at the onset of the week," said Exinity Group Chief Market Analyst Han Tan.

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The dollar index slipped 0.6 per cent, boosting gold's appeal for holders of other currencies.

"Markets are also wading back in with bets for a Fed rate cut in December, with such restored odds offering some lift to bullion prices," Tan said.

There was uncertainty about the direction of the economy, as noted by Fed officials in the minutes released on Tuesday, and the markets slightly increased their bets on a December rate cut following the release.

Markets now see a 66 per cent chance of a quarter-point rate cut, as per the CME group's FedWatch tool, compared with 55.7 per cent earlier this week. The non-yielding bullion tends to shine in a lower-interest-rate environment.

"Those odds may be influenced by today's incoming U.S. economic data, especially the PCE prints," said Tan.

Investors are now watching out for core PCE figures, initial jobless claims, and GDP (first revision), all due later in the day.

On the physical side, a drop in gold prices this month has drawn in buyers of the metal who had been waiting for the market's lightning rally this year to subside.

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Spot silver rose 0.1 per cent to $30.45 per ounce, platinum added 0.5 per cent to $932.30 and palladium was up 0.7 per cent at $984.21.

FAQs

Q1. What is latest Gold price?
A1. Spot gold rose 1 per cent at $2,656.30 per ounce as of 1400 GMT. US gold futures rose 1.2 per cent to $2,653.10, Reuters reported.

Q2. What is latest Silver price?
A2. Spot silver rose 0.1 per cent to $30.45 per ounce, platinum added 0.5% to $932.30 and palladium was up 0.7 per cent at $984.21.