WASHINGTON (dpa-AFX) - Gold prices ticked higher on Thursday despite reduced expectations for a December rate cut by the Federal Reserve.
Spot gold rose 0.4 percent to $2,646.60 per ounce in European trade while U.S. gold futures were down 0.2 percent at $2,670.46.
According to LSEG data, traders currently price in a 65 percent chance of the Fed cutting rates next month and are anticipating 75 basis points of easing by the end of 2025.
The inflation outlook has become cloudier as another solid monthly core inflation for November challenged the FOMC's view of bringing inflation to the 2 percent target.
Macquarie strategists said the implementation of tariff threats by the incoming Trump administration could create a renewal of upward pressure in core goods.
The dollar edged up from a two-week low against its major peers in thin holiday trade after signs of an uptick in inflation.
The annual rate of growth in the PCE price index accelerated to 2.3 percent in October from 2.1 percent in September, while the core personal consumption expenditure index climbed 2.8 percent from the corresponding period last year, reaching a six-month high, the Commerce Department said.
Separate reports showed the American economy expanded at a healthy 2.8 percent annual pace from July through September and weekly jobless claims fell again last week.
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