Gold climbed a near two-week high on Wednesday, after new U.S. economic data bolstered expectations of an interest rate cut by the Federal Reserve in December and weighed on the dollar.
Spot gold rose 0.87% to $4,166.7 per ounce, its highest since November 14.
"Expectations are now being shaped more towards a December rate cut occurring...the case for which has been strengthened by a chorus of dovish remarks from Fed officials and benign economic data, which is boosting gold from a yield perspective," said KCM Trade Chief Market Analyst Tim Waterer.
Data showed Tuesday that U.S. retail sales increased less than expected in September, and in the 12 months through September, the Producer Price Index increased 2.7% after advancing by the same margin in August.
The data came on the heels of recent dovish remarks from Fed policymakers.
The dollar touched a one-week low as investors wagered that the leading candidate for the next Fed chair may guide policy in a more dovish direction, making greenback-priced bullion less expensive for other currency holders.
The benchmark 10-year Treasury yields held near one-month lows hit in the previous session.
Meanwhile, U.S. Treasury Secretary Scott Bessent said on Tuesday the Fed's system of managing interest rates is struggling and needs to be simplified.
Markets are pricing in an 84% chance of a Fed rate cut in December, compared to 50% last week, according to CME FedWatch tool data.
Gold, a non-yielding asset, tends to perform well in low-interest-rate environments.
The U.S. weekly jobless claims report is scheduled for release later on Wednesday.
Elsewhere, top consumer China's net gold imports via Hong Kong in October fell about 64% from September.
Among other metals, spot silver rose 1% to $51.87 per ounce, platinum lost 0.2% to $1,550.40, and palladium was down 0.5% to $1,390.66.
