Forex.com’s Fawad Razaqzada stated that gold's response to CPI data is limited unless inflation surprises to the upside, which could dampen expectations for further rate cuts. The market sees an 86% chance of a 25-basis-point Fed rate cut in December.

Gold is favored as a safe investment during economic and geopolitical uncertainty, benefiting from low or falling interest rates. China’s plans for more accommodative policies next year could also boost demand for gold, particularly ahead of the Lunar New Year.

Gold Prices Surge on Geopolitical Tensions and Rate Cut Expectations

Dec 11 2024