Gold rose 0.85% to $4,057.01 an ounce at 2 a.m. ET (07:00 UTC) Wednesday as traders fully priced in a December Fed increase, keeping borrowing costs in focus for non-yielding bullion, Gulf News reported.
The gain followed a 2.6% decline in the prior session. October U.S. consumer prices exceeded forecasts on Nov. 10, Gulf News reported, while Treasury yields and a measure of the dollar stopped rising after a sharp jump. Because gold pays no interest, higher borrowing costs can weigh on its appeal; a stronger dollar can make it more expensive for most buyers.
Gulf News reported that 24-karat gold in the UAE cost Dh487.75 per gram, up from Dh485 the previous day.
Bloomberg reported that Chicago Fed President Austan Goolsbee described the October inflation report as “borderline disturbing.” Gulf News reported that Dallas Fed President Lorie Logan saw a need for two or more quarter-point rate increases, potentially at a faster pace than this fall, and that Federal Reserve Governor Christopher Waller had earlier raised a half-point December move as a possibility.
Pepperstone research strategist Dilin Wu expected near-term pressure to persist, Gulf News reported, while maintaining a constructive medium-term outlook based on central-bank demand and fiscal uncertainty. Wu identified $4,000 as a level to watch. A stock market decline linked to AI financing concerns could prompt investors to sell gold for cash, while stronger equity gains could redirect attention to riskier assets, Wu said.
EconoTimes recently covered gold near $4,000 as investors weighed U.S. data and the Fed outlook.
