Gold climbed toward $2,640 per ounce on Wednesday as investors continued to assess the latest FOMC minutes while awaiting key US data for further insights into the Federal Reserve's monetary policy direction.
Gold rises ahead of key US data
Although officials expressed confidence in inflation easing and the resilience of the labor market, the minutes also highlighted a cautious stance on further rate cuts, with a preference for gradual adjustments. Most investors are still anticipating a 25bps rate cut in December, with the probability around 63%, which would lower the opportunity cost of holding non-interest-bearing gold.
Traders monitor US data
Traders are closely monitoring upcoming data, including initial jobless claims, the second estimate of GDP, and PCE figures. However, gold's appeal was somewhat muted by easing geopolitical risks and a stronger US dollar. Meanwhile, China’s net gold imports through Hong Kong in October declined from September and fell 43% year-on-year.
