Gold Rises, Dollar Dips as Market Anticipates U.S. Rate Cut

Gold advanced, aided by dollar weakness and the growing chance of an interest-rate cut in the U.S. before year-end, Yihui Xie and Preeti Soni reported for Bloomberg News.

Gold typically benefits when rates are low, as it doesn’t pay interest.

Bullion was near $4,165 an ounce in Asian trading, having ended Tuesday little changed, while the U.S. currency dropped for a second session, making the precious metal cheaper for many buyers.

Delayed economic data strengthened bets the Federal Reserve will lower rates next month.

A modest rise in September retail sales showed that several months of robust spending have lost steam, while consumer confidence fell the most since April.

Gold typically benefits when rates are low, as it doesn’t pay interest.

Swaps traders are now seeing a more than 80 percent chance of a quarter-point cut in December. The Fed’s next decision has become “the ultimate Pandora’s box for risk this year, and likely into 2026,” said Hebe Chen, an analyst at Vantage Markets in Melbourne.

“With no solid economic glue holding expectations together, any optimism stays fragile — and the latest swings in equities and crypto show just how quickly sentiment can flip,” she said.