Gold rises on Fed rate cut bets

Gold rose to around $4,150 per ounce on Wednesday, hovering close to a nearly two-week high, following the release of delayed economic data that strengthened expectations of a Federal Reserve rate cut in December.

Recent figures suggest a loss of consumer momentum, with retail sales rising just 0.2% in September after a stronger gain in August, pointing to increasingly cautious household spending.

At the same time, producer price data showed that inflation pressures remained broadly in line with expectations, reinforcing the view that price growth is gradually cooling.

The data follows a series of comments from Fed officials signaling support for a rate reduction next month amid persistent weakness in the labor market and signs of moderating economic activity.

As a result, markets are now pricing in more than an 80% chance of a 25 bps cut, sharply higher than the roughly 50% odds seen a week earlier.

Still, further gains for bullion are being capped by signs of easing geopolitical tensions, after Ukrainian officials agreed to a framework aimed at ending the war with Russia, reducing the appeal of safe-haven assets.