Gold Steady at $4,145 Amid Fed Rate Cut Hopes

Gold prices held steady on Wednesday, trading around $4,145 per ounce after retreating from two-week highs, as traders weighed rising expectations for a Federal Reserve interest rate cut in December against a rebounding U.S. dollar.

The precious metal's resilience came amid a dovish tilt in Federal Reserve commentary and recent economic data signaling potential weakness in the U.S. economy. Spot gold eased slightly from an intraday peak near $4,140, while U.S. gold futures for December delivery climbed 0.7 percent to $4,049.50 per ounce. Investors now see an 81 percent chance of a 25-basis-point rate reduction at the Fed's December 9-10 meeting, up from 40 percent a week earlier, according to market pricing tools. This shift followed comments from New York Fed President John Williams on Friday, who indicated that rates could decline in the near term without jeopardizing the central bank's 2 percent inflation target, provided it helps stabilize the job market. Federal Reserve Governor Christopher Waller echoed this support on Monday, bolstering optimism for further easing after September and October cuts that brought the policy rate to 3.75-4.00 percent.