Gold steadied at the close of Asia trade on Wednesday as investors awaited a raft of U.S. data this week to set the course for the U.S. Federal Reserve's monetary policy, while silver vaulted to a record high.
Spot gold was steady at $4,205.78 per ounce, as of 0647 GMT, after falling more than 1% in the previous session. U.S. gold futures for December delivery were up 0.4% at $4,237.20 per ounce.
"I think buyers remain keen on gold given the interest rate outlook, but they are perhaps waiting for more evidence of economic softening which may give a further signal to the Fed that a rate cut this month may be warranted," said KCM Trade Chief Market Analyst Tim Waterer.
Investors are focused on data, including November ADP employment figures on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, the Fed's preferred inflation gauge, due on Friday.
Prices are largely steady, with few fresh catalysts and with higher liquidity in European and U.S. hours usually cooling some of the early Asia-session enthusiasm, Waterer added.
U.S. rate futures now price an 88% chance of a rate cut next week, up from 85% a week ago, according to CME's FedWatch tool.
Recent U.S. data showing a slight economic slowdown has reinforced expectations of a rate cut at the Fed's December 9-10 meeting, with major brokerages also forecasting policy easing.
Non-yielding gold tends to perform well in a low-interest-rate environment.
Silver fell 1% to $57.87/oz after climbing to a fresh record high of $58.94 earlier in the session.
"Spot market tightness in the London market, and recently, inventory data in China has also plunged, while at the same time there is uncertainty around import tariffs concerning silver. So these factors are still supporting silver prices," said Soni Kumari, a commodity strategist with ANZ.
Elsewhere, platinum gained 0.8% to $1,651.15, while palladium lost 1% to $1,447.19. - Reuters
