Gold rises for the third consecutive session, reaching its highest level in two weeks.

Gold prices experienced a strong rise during trading on Wednesday, marking the third consecutive day of gains, as the precious metal reached its highest levels in 12 sessions. This increase came after official U.S. data revealed that the Consumer Price Index (CPI) grew at a faster pace in November, aligning with market expectations.

In this context, the annual general inflation rate accelerated from 2.6% in October to 2.7% for November, while the core inflation rate – which excludes energy and food prices – remained stable at the previous level of 3.3%.

Shortly after the data's release, both spot and futures gold contracts saw a sharp rise; the markets now see a 96.4% chance that the U.S. Federal Reserve will cut interest rates in next week's meeting, according to the U.S. interest rate tracking tool issued by the CME Group.

Therefore, the upcoming rate cut may negatively impact the performance of the U.S. dollar while positively affecting dollar-denominated commodities including gold, making gold purchases a more cost-effective investment opportunity for investors holding other foreign currencies than the dollar.

In addition to this, the geopolitical landscape and recent developments have significantly affected the demand for gold as one of the most well-known safe-haven assets for investors. U.S. intelligence reports indicated that Russia may use the new experimental Oryol missile in Ukraine in the coming days, raising concerns about a potential game changer in the long-standing conflict between Russia and Ukraine.

Current Gold Prices

In today's trading, the spot prices of gold surged by about 0.77% or approximately $20.5, reaching $2,714.65 per ounce. Simultaneously, the prices of February delivery gold futures climbed significantly by about 1.46% or $39.76, trading close to the level of $2,758.16 per ounce.