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Gold Holds Steady Ahead of U.S. PCE Data as Yields Stay Elevated

Markets look to the Fed’s preferred inflation gauge to guide bets on the path of rates.

Overview

  • Spot gold traded at $4,208.46 per ounce and was on track for a 0.5% weekly decline.
  • U.S. 10-year Treasury yields hovered near their highest level in more than two weeks as the dollar lingered near a five-week low.
  • December gold futures eased 0.1% to $4,237.70 an ounce in early trading.
  • Investors awaited the PCE inflation release at 1500 GMT and a Reuters poll pointed to a likely 25 bp rate cut at the Fed’s December 9–10 meeting.
  • Konal Shah of Nirmal Bang Commodities said the market is waiting for new catalysts from the Fed and noted higher yields are pressuring bullion, while silver rose 0.5% to $57.40 after a record $58.98 midweek and platinum fell as palladium advanced.