Gold Prices Rise Ahead of US Inflation Data

9 Dec 2024 , 11:55 AM

As investors awaited this week’s publication of U.S. inflation data for clues about the Federal Reserve’s monetary policy, gold prices edged up on Monday.

Spot gold was up 0.1% at $2,631.60 an ounce, following a session high of $2,647.99. At $2,658.10, U.S. gold futures were stable.

The U.S. inflation report, which is scheduled on Wednesday, is currently anticipated by traders.

The markets currently estimate an 85.1% possibility of a 25 basis point rate drop this month, according to the CME Group’s FedWatch Tool. The opportunity cost of owning non-yielding bullion is reduced by lower rates.

After reports indicated that the U.S. labour market remained robust but continued to cool in November, Federal Reserve officials seemed poised to lower interest rates this month.

The Labour Department’s monthly employment report released on Friday revealed that although U.S. employers added 227,000 jobs last month, a recovery from a setback caused by hurricanes in October, the unemployment rate crept up to 4.2%.

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