02:00 PM EST, 12/11/2024 (MT Newswires) -- (Updates prices.)

Gold futures rose for a fourth-straight day early on Wednesday as a key U.S. inflation measure met expectations, increasing the likelihood the Federal Reserve will cut interest rates next week.

Gold for February delivery was last seen up US$37.80 to US$2,756.20 per ounce.

"Gold is back in 'Santa' rally territory, currently up 2% on the month and on track for an unprecedented eighth consecutive December gain," Saxo Bank noted.

The U.S. Bureau of Labor Statistics reported the November Consumer Price Index (CPI) rose by 0.3% from November, matching expectations according to Marketwatch, after four-straight monthly rises of 0.2%. Core CPI, excluding volatile food and energy, rose 3.3% annualized, also matching expectations.

The data is unlikely to convince the Federal Open Market Committee to pause interest-rate cuts. The group is expected to deliver a 25 basis-point cut to rates at the end of its meeting next Wednesday. However the release of the Producer Price Index on Thursday, which is expected to show another monthly rise of 0.2%, could also affect the group's decision.

The dollar edged up following the data, with the ICE dollar index last seen up 0.24 points to 106.63.

Treasury yields rose, with the U.S. two-year note last seen paying 4.164%, up 1.7 basis points, while the yield on the 10-year note was down 4.1 points to 4.266%.