Gold prices ticked higher in Asian trade on Tuesday, consolidating Monday’s sharp rebound as investors looked ahead to a slate of delayed United States economic data that could influence expectations for a December interest rate cut.
By 3:45 pm AEDT (4:45 am GMT), spot gold was 0.3% higher at US$4,145.69 per ounce, extending its recovery after rising 1.7% on Monday.
The metal remains capped below the US$4,150 region, with its next move likely driven by incoming U.S. releases, including September retail sales and producer price index figures.
These will be followed by the Conference Board’s consumer confidence report and pending home sales data.
Markets are currently pricing an 80.9% chance of a December rate cut, according to the CME Group FedWatch Tool, after a series of dovish remarks from policymakers reignited expectations for near-term easing.
New York Fed President John Williams said Friday that U.S. interest rates could fall without putting the Fed's inflation goal at risk, while helping guard against a slide in the job market.
The renewed conviction behind a December move underpinned gold’s rebound on Monday, while geopolitical developments also offered support.
Traders are also monitoring outcomes from talks in Geneva between Western officials and Ukraine on a potential peace deal with Russia.
Gold’s near-term direction will now hinge on U.S. data releases and further news from U.S.-Ukraine negotiations, with additional Fedspeak likely to influence interest-rate expectations and broader market sentiment.
