World gold prices moved sideways in the session of December 3 in Asia, as investors awaited a series of important US economic data this week to determine the monetary policy direction of the US Federal Reserve (Fed). Meanwhile, silver adjusted slightly after reaching an all-time high.
As of 1:47 p.m. (Vietnam time), spot gold was stable at $4,205.78/ounce, after falling more than 1% in the previous session. December gold futures on COMEX increased by 0.4%, to $4,237.20/ounce.
Investors are focusing on a series of upcoming US data, including the ADP private sector employment report for November, the personal consumption expenditure price index (PCE) - the Fed's preferred inflation measure - along with industrial production indicators, to find more signals about when the central bank will start the interest rate cutting cycle.
Buyers are still quite strong on gold thanks to the prospect of falling interest rates, but investors may be waiting for more evidence that the US economy is slowing a factor that could prompt the Fed to consider cutting interest rates this month, said Tim Waterer, chief market analyst at KCM Trade.
Mr. Waterer added that gold prices are fluctuating narrowly due to a lack of new momentum, while increased liquidity in European and US sessions often causes the momentum to start the Asian session to cool down quickly.
According to CME Group's FedWatch tool, the probability of the Fed cutting interest rates at the December 9-10 meeting is currently at 88%, up from 85% last week. Recent data shows that the US economy is slowing slightly, reinforcing expectations that the Fed is about to enter a monetary policy easing cycle, in the context that many major financial institutions have also lowered their growth forecasts.
In contrast to gold, silver fell 1% to 57.87 USD/ounce, after hitting a record peak of 58.94 USD/ounce in the previous session. Ms. Soni Kumari, commodity strategist of ANZ Bank, commented:
The London spot market remains in a supply shortage, while inventories in China have fallen sharply. At the same time, instability in silver import tax is creating fluctuations. These factors are keeping silver prices high.
In the other precious metals market, platinum increased by 0.8% to 1,651.15 USD/ounce, while palladium decreased by 1%, to 1,447.19 USD/ounce.
