09:03 AM EST, 11/25/2025 (MT Newswires) -- Gold traded higher early on Tuesday on rising hopes for December rate cut from the Federal Reserve while a delayed report on U.S. wholesale price inflation in September matched expectations.

Gold for February delivery was last seen up US$45.00 to US$4,175.80 per ounce.

In a report delayed by the U.S. government shutdown, the Bureau of Labor Statistics reported the September Producer Price Index (PPI) rose by 0.3% in September, down from a revised 0.8% pace in August and matching the consensus expectation among analysts polled by FactSet. On an annualized basis, PPI was up 2.7%, up from 2.6% a month earlier and above the 2.6% consensus estimate.

Core PPI, excluding foods, energy, and trade services, rose 0.1% monthly, down from 0.1% in August.

The U.S. Census Bureau also released a delayed retail sales report, showing sales rose by 0.16% in September, down from a revised 0.6% in August and under the consensus estimate for a rise of 0.4%.

The data is unlikely to dent expectations the Federal Reserve will again cut interest rates at the Dec. 10 end to the two-day meeting of its policy committee. The CME FedWatch Tool now sees an 82.9% probability for a rate cut, up from 50.1% a week ago.

The dollar weakened early, with the ICE dollar index last seen down 0.15 points to 99.99. Treasury yields also eased, with the yield on the U.S. two-year note last seen down 1.0 basis points to 3.493%, while the 10-year note was paying 4.018%, down 1.4 points.