Gold futures add 1% as US inflation data looms

Gold alloys

Gold prices rose at a striking pace today, Nov. 27, as investor focus turned to key US economic data, led by the Personal Consumption Expenditures (PCE) Index, amid a shrinking geopolitical risk premium after the Israel-Hezbollah ceasefire agreement.

Gold futures prices for December delivery advanced 1%, or $26.90, to $2,648.20 per ounce at 11:07 am Makkah time, with spot prices also soaring 0.60% to $2,647 an ounce.

Likewise, silver contracts for December delivery increased 1% to $30.71 per ounce, in tandem with a 1.30% jump in palladium spot prices to $$989.73 per ounce.

Israel and Lebanon’s Hezbollah agreed to a 60-day ceasefire, starting today, through US-French mediation. News of the deal sent gold down 3% on Monday.

Investors are weighing the views of Federal Reserve officials released yesterday in the minutes of the US central bank’s last policy meeting, which indicated support for a cautious approach to future interest rate cuts.

All eyes are also on the latest PCE reading, the first revision to GDP growth and weekly jobless claims, due later today.