Gold edged higher on Wednesday, rising to $4,159.49 per ounce, up 0.69% from the previous session, marking gains of 4.47% over the past month and a remarkable 57.7% increase year-on-year.
The precious metal hovered close to a nearly two-week high as investors reacted to delayed U.S. economic data that strengthened expectations of a Federal Reserve rate cut in December.
Retail sales figures for September showed a modest 0.2% increase, down from stronger gains in August, signaling a slowdown in consumer momentum. Meanwhile, producer price data indicated inflation pressures were largely in line with market forecasts.
Several Fed officials have recently voiced support for easing monetary policy, citing weakness in the labor market, prompting markets to price in more than an 80% chance of a 25-basis-point cut, up from 50% just a week ago.
Adding to gold’s support, signs of easing geopolitical tensions emerged after Ukrainian officials agreed to a plan aimed at ending the war with Russia, reducing demand for safe-haven assets.
Analysts say gold remains sensitive to global macroeconomic shifts, balancing expectations of U.S. policy easing against declining geopolitical risk, while investors continue to view it as a hedge against uncertainty and inflation.
