Investing.com– Gold prices edged higher on Thursday, supported by slowing U.S. inflation data from the previous session, which reinforced expectations of a Federal Reserve rate cut in December.

Although the Fed is broadly anticipated to implement a third rate cut next month, minutes from the November meeting released on Tuesday revealed differing opinions among officials on the extent of future rate reductions.

rose 0.4% to $2,645.73 an ounce, while expiring in February was up 0.2%  to $2,669.41 by 07:10 ET (12:10 GMT). 

Strong PCE, GDP data spur rate cut doubts 

data- the Fed’s preferred inflation gauge- rose as expected in October, moving further above the central bank’s 2% annual target. The reading was accompanied by data showing steady growth in the third quarter, as well as slightly stronger-than-expected weekly data.

While the readings did little to deter expectations for a December rate cut, traders were seen growing more uncertain over the outlook for rates in 2025.

Uncertainty over a Donald Trump presidency added to the mix, given that he is expected to dole out more expansionary policies and trade tariffs that will push up inflation.

This trend is expected to limit the Fed’s easing cycle. UBS analysts said in a recent note the central bank will slow down its rate cuts to a once-a-quarter affair in 2025, and also forecast a higher terminal rate.

Higher-for-longer rates bode poorly for non-yielding assets such as gold.

Other precious metals also fell on Thursday and were nursing steep losses in recent weeks. steadied at $933.65 an ounce, while fell 1% to $30.523 an ounce. 

Copper prices weak, more China cues awaited 

Among industrial metals, copper prices moved little after logging steep losses in recent sessions, with focus turning to more economic cues from top copper importer China.

Benchmark on the London Metal Exchange fell 0.5% to $8,978 a ton, while February steadied at $4.1238 a pound.

The red metal was pressured by growing fears of a Sino-U.S. trade war, after U.S. President-elect Donald Trump threatened to impose more tariffs against China.

Traders were also waiting to see what stimulus measures Beijing will enact to offset economic pressure from any increased U.S. tariffs.

Chinese data for November is due on Saturday and will offer more cues on the economy.

(Ambar Warrick contributed to this article)

By Paul Carsten

LONDON (Reuters) -Oil prices ticked up on Thursday, after Israel said its ceasefire with Lebanese armed group Hezbollah was violated and Israeli tanks fired on south Lebanon and OPEC+ delayed by a few days a meeting likely to extend production cuts.

futures edged up by 41 cents, or 0.6%, to $73.24 a barrel by 1251 GMT while U.S. West Texas Intermediate crude futures were up 35 cents, 0.5%, at $69.07. Trading is expected to be light because of the U.S. Thanksgiving holiday on Thursday.

Israel’s military said on Thursday the ceasefire was violated after what it called suspects, some in vehicles, arrived at several areas in the southern zone.

The deal took effect on Wednesday and was intended to allow people in both countries to start returning to homes in border areas shattered by 14 months of fighting.

The Middle East is one of the world’s major oil-producing regions, and while the ongoing conflict has not so far not impacted supply it has been reflected in a risk premium for traders.

Elsewhere, OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a conflict with another event.

Also supporting prices, OPEC+ sources have said there will again be discussion over another delay to an oil output increase scheduled for January.

The group pumps about half the world’s oil but has maintained production cuts to support prices. It hopes to unwind those cuts, but weak global demand has forced it to delay the start of gradual increases.

A further delay has mostly been factored in to oil prices already, said Suvro Sarkar at DBS Bank. “The only question is whether it’s a one-month pushback, or three, or even longer.”

Depressing prices slightly, U.S. gasoline stocks rose 3.3 million barrels in the week ending Nov. 22, the U.S. Energy Information Administration said on Wednesday, countering expectations of a small draw in fuel stocks ahead of holiday travel. [EIA/S]

Slowing fuel demand growth in top consumers China and the United States has weighed on oil prices this year.

Brent and WTI this week have lost 2.5% and 3% respectively.

Investing.com– Gold prices rose slightly in Asian trade on Wednesday, extending small gains from the prior session as demand for safe havens remained underpinned by the prospect of increased U.S. trade tariffs.

Still, bigger gains in gold were held back by resilience in the U.S. , while easing tensions in the Middle East also sapped some demand for safe havens. 

rose 0.3% to $2,40.16 an ounce, while expiring in February rose 0.7% to $2,665.41 an ounce by 23:38 ET (04:38 GMT). 

Trump threatens more trade tariffs

U.S. President-elect Donald Trump threatened to impose additional trade tariffs on China, Canada and Mexico when he takes office, sparking increased concerns over a renewed trade war between the world’s largest economies. 

Analysts warned that any steep tariffs could undermine global economic growth and also push up U.S. inflation- which presents a higher outlook for interest rates in the long term.

The dollar rose sharply on this notion, limiting overall gains in gold. 

Safe haven demand for gold was also stymied by U.S. President Joe Biden announcing a ceasefire deal between Israel and Hezbollah, heralding a de escalation in the Middle East conflict.

Other precious metals were marginally positive on Wednesday. rose 0.4% to $30.962 an ounce, while edged higher to $932.05 an ounce. 

Among industrial metals, benchmark on the London Metal Exchange rose 0.6% to $9,026.50 a ton, while expiring in February rose 0.4% to $4.1463 a pound. 

Trump policies to limit gold appetite- BofA 

Trump’s economic policies, which are expected to invite higher U.S. growth and a stronger dollar- could limit investor appetite for gold, Bank of America analysts warned in a recent note.

Trump is expected to dole out more corporate tax cuts and economically expansionary policies in his second term, supporting growth but also pushing up inflation.

This trend is expected to keep U.S. interest rates relatively high in the long term, underpinning the dollar and Treasury yields, while limiting demand for gold. 

Precious metals, especially gold, were nursing steep losses through November after Trump’s election victory near the beginning of the month.

Industrial metal prices were pressured by the prospect of more U.S. hawkishness towards China, which is a major importer of copper and other base metals.