Gold prices hold near two-week high for another day

Gold prices remained mostly steady on Thursday after reaching a near two-week high in the previous session, as investors tried to read the Federal Reserve’s next move on interest rates.

Spot gold was trading at $4,154.09 per ounce, down 0.2 percent, while US gold futures for December delivery fell 0.3 percent to $4,151.20 per ounce.

Market participants are cautious ahead of the Fed’s upcoming meeting, with uncertainty over whether a December rate cut is likely. Brian Lan, managing director at GoldSilver Central, said the precious metal is consolidating as investors wait for clearer signals from the Fed.

Conflicting messages from policymakers have driven investors toward hedging strategies in derivatives tied to overnight rates. New York Fed President John Williams and Governor Christopher Waller have suggested that weaker labour market data could justify easing in December, contributing to lower Treasury yields. Benchmark 10-year Treasury yields hovered near one-month lows on Wednesday.

Other Fed officials, however, have called for caution, arguing that interest rates should remain unchanged until inflation moves closer to the 2 percent target. Kevin Hassett, a potential successor to Fed Chair Jerome Powell, has joined those advocating lower rates, echoing comments from US President Donald Trump.

According to the CME’s FedWatch tool, futures markets now assign an 85 percent probability of a December rate cut.

Gold, which does not pay interest, typically benefits in a low-rate environment. Economic data this week has highlighted ongoing weaknesses in the US labour market. Weekly jobless claims fell slightly last week, but the market continues to struggle to create enough jobs for those seeking work. Consumer confidence also declined in November, as Americans grew more concerned about employment prospects and household finances.

Other precious metals saw mixed movements. Spot silver slipped 0.9 percent to $52.89 per ounce, platinum rose 1.4 percent to $1,611.04, and palladium fell 0.9 percent to $1,409.87.