Gold prices rise for fifth consecutive day

Dec 12 (Reuters) – Gold prices rose for a fifth straight session on Thursday, hovering near more than two-week highs, as expectations for a rate cut from the Federal Reserve next week grew as expectations for a rate cut from the Federal Reserve in line with U.S. inflation data increased. forecast.

* Spot gold was up about 0.1% at $2,719.79 an ounce as of 0035 GMT. U.S. gold futures were steady at $2,755.40.

* U.S. consumer prices rose by the most in seven months in November, but that is unlikely to prevent the Federal Reserve from cutting interest rates for a third time next week amid a cooling labor market.

* CME’s FedWatch tool shows traders predict a 98.6% chance of a 25 basis point rate cut by the Fed at its Dec. 17-18 meeting.

* Focus now turns to U.S. producer price index data due out at 1330 GMT to provide insight into the Fed’s monetary policy in 2025.

* Meanwhile, with euro zone inflation close to target and the economy faltering, the European Central Bank is almost certain to cut interest rates again on Thursday and signal further easing in 2025.

* Gold is viewed as a safe investment during times of economic and geopolitical turmoil and thrives in a low interest rate environment.

* Elsewhere, the UN General Assembly voted overwhelmingly on Wednesday to demand an immediate, unconditional and permanent ceasefire between Israel and Palestinian militants Hamas in the Gaza Strip, and the immediate release of all hostages.

* Gold and silver markets will resume a gradual upward trend within 3-12 months, reaching $3,000/ounce and $36/ounce respectively, Citi said in a report.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings increased 0.30% to 873.38 tons on Wednesday from 870.79 tons on Tuesday.

* Spot silver rose 0.1% to $31.94 an ounce, platinum rose 0.4% to $943.10 an ounce and palladium rose 0.5% to $986.25 an ounce.

Data/Events (GMT) 1315 EU ECB Refinancing Rate Dec 1315 EU ECB Deposit Rate Dec 1330 US Initial Unemployment CLM Dec 7 w/e 1330 US PPI Machine Manufacturing Nov

(Reporting by Rahul Paswan; Editing by Shirley Jacob Phillips)