Gold prices held largely steady in Asian trading on Wednesday, as investors waited for key U.S. economic data and next week’s Federal Reserve meeting, where a rate cut is broadly expected. Spot gold last traded flat at $4,204.55 an ounce by 02:45 ET (07:45 GMT). U.S. Gold Futures for gained 0.4% to $4,235.75. The yellow metal had hit a six-week high of $4,264.29/oz earlier this week.

Fed-cut bets, dollar weakness stir bullion demand

Markets are now pricing in roughly a 90% probability of a rate cut at the Fed’s December 9–10 meeting, according to CME’s FedWatch tool.

A dovish tilt has pushed the U.S. dollar lower -- the US Dollar Index has dipped toward its weakest levels since mid-November -- rendering gold more attractive for overseas buying.

At the same time, softening signals from U.S. economic data have reinforced speculation about rate cuts. Market participants are awaiting the release of the private-sector ADP National Employment Report for November due Wednesday and the delayed September Personal Consumption Expenditures Price Index (PCE) scheduled for Friday — both closely watched by the Fed.

Potential Fed leadership change adds to dovish narrative

Markets are also speculating about a leadership change at the Fed. Reports suggest that Kevin Hassett, a White House economic adviser known for his support of lower interest rates, is a front-runner to succeed current Chair Jerome Powell.

That possibility has added to the anticipation of a softer monetary policy stance under new leadership, bolstering gold’s safe-haven appeal.

Metal markets subdued

Other precious and industrial metals traded in tight ranges on Wednesday as investors remained on the sidelines ahead of the Fed decision.

Silver Futures were unchanged at $58.67 per ounce, just below record highs of $59.65. Platinum Futures fell 1.2% to $1,663.60/oz.

Benchmark Copper Futures on the London Metal Exchange gained 0.5% to $11,255.20 a ton, while U.S. Copper Futures rose 0.7% to $5.29 a pound.