- Traders see 83% chance of US interest rate cut in December
- US retail sales rose less than expected in September
- US consumer confidence falls in November
Nov 26 (Reuters) - Gold prices rose to a near two-week high on Wednesday, after benign U.S. economic data reinforced expectations of a Federal Reserve interest rate cut next month, supporting non-yielding bullion.
Spot gold was up 0.7% to $4,159.23 per ounce at 0843 GMT, its highest since November 14. U.S. gold futures for December delivery were up 0.4% at $4,155.90 per ounce.
"Market participants are starting to price in again a U.S. rate cut for December. Lower interest rates tend to be positive for the yellow metal," said UBS analyst Giovanni Staunovo.
"We continue to see further upside in the near term, with a year-end forecast of $4,200/oz and $4,500/oz mid next year."
Data on Tuesday showed U.S. retail sales in September rose less than expected while producer prices were in line with expectations.
U.S. consumer confidence also weakened in November as households grew more concerned about jobs and their financial outlook.
The data releases followed a series of recent dovish comments from Fed policymakers.
Traders now see an 83% chance of a Fed rate cut next month, compared to 30% a week ago, the CME FedWatch tool showed.
Bullion, a non-yielding asset, tends to perform well in low-interest-rate environments.
Additional support for the metal came from a report that White House economic adviser Kevin Hassett has emerged as the frontrunner to be the next Fed chair, reinforcing expectations of a dovish policy approach favored by President Donald Trump.
Investors now await the U.S. weekly jobless claims report due later Wednesday, a critical gauge for labor market health and Fed policy prospects.
Among other metals, spot silver rose 1.3% to $52.09 per ounce, platinum was up 0.4% at $1,559.96, and palladium gained 0.1% to $1,398.79.
Reporting by Noel John in Bengaluru Editing by Mark Potter
Source: Reuters