Gold prices saw a modest rise in early Asian trading on Wednesday, driven by hopes for a possible interest rate cut by the Federal Reserve in December. Spot gold saw a rise of 0.2%, hitting $4,136.59 per ounce, as of 0054. Gold futures in the U.S. for December delivery fell by 0.1%, closing at $4,134.00 per ounce. Markets are now showing an 84% chance of a Federal Reserve rate cut next month, a significant rise from the 50% probability noted last week, according to data. Data released on Tuesday showed that U.S. retail sales increased at a pace that fell short of expectations in September.

A separate report indicated that, in the 12 months ending in September, the Producer Price Index rose by 2.7%, consistent with the increase observed in August. The data came in after recent dovish remarks from Federal Reserve officials, strengthening hopes for a rate cut. U.S. Treasury Secretary Scott Bessent stated on Tuesday that the Federal Reserve’s method of managing interest rates is encountering difficulties and needs to be streamlined. Gold, known for being a non-yielding asset, usually shows robust performance in situations with low interest rates and during periods of geopolitical uncertainty.

On the geopolitical front, a negative impact on prices was President Volodymyr Zelenskiy’s statement that Ukraine was ready to seek a U.S.-supported framework to end the conflict with Russia and tackle contentious matters with U.S. President Donald Trump in talks he suggested should include European allies. The U.S. weekly jobless claims report will be released later on Wednesday.

Leading consumer In October, China’s net gold imports via Hong Kong saw a drop of about 64% in comparison to September, as per the released data. Among other metals, spot silver saw a drop of 0.1% to $51.36 per ounce, while platinum fell by 1% to $1,538.00, and palladium decreased by 1.1% to $1,382.24.