Gold Rises to 10-Day High on Growing Expectations of U.S. Rate Cuts
Spot silver rose 1.7% to $50.73 per ounce, platinum gained 2.3% to $1,559.50, and palladium added 1.9% to $1,436.25.
Quick overview
- Gold prices rose to their highest level in over ten days, reaching $4,147.15 per ounce, driven by expectations of a Federal Reserve rate cut in December.
- The U.S. dollar index weakened, making gold more affordable for international buyers, which contributed to the price increase.
- Market sentiment is bolstered by comments from New York Fed President John Williams regarding potential interest rate cuts without harming inflation targets.
- Other precious metals also saw gains, with silver, platinum, and palladium rising by 1.7%, 2.3%, and 1.9% respectively.
Gold prices climbed on Monday, hitting their highest level in more than ten days, supported by growing expectations of a Federal Reserve rate cut in December and a weaker U.S. dollar.
Spot gold rose 1% to $4,147.15 per ounce, its strongest level since November 13. U.S. gold futures for December delivery gained 1.3% to $4,118.45 per ounce. Meanwhile, the dollar index slipped slightly, making gold cheaper for holders of other currencies.
Markets are increasingly convinced that the Fed is on track to cut rates in December. A combination of lower-rate expectations and a softer dollar has helped lift gold in recent sessions.
On Friday, New York Fed President John Williams said interest rates could move lower without jeopardizing the central bank’s inflation target, while also helping guard against a deterioration in the labor market.
Gold—an asset that offers no yield—tends to perform well in low-rate environments.
Investors expect new data as they bet on a December rate cut
Traders were awaiting key U.S. data due later this week, including retail sales, jobless claims, and producer price figures.
On the geopolitical front, the United States and Ukraine continued talks in Switzerland on Monday in search of a mutually acceptable peace plan, after agreeing to revise a U.S. proposal that Kyiv and European allies saw as too aligned with Kremlin demands.
Other metals
Spot silver rose 1.7% to $50.73 per ounce, platinum gained 2.3% to $1,559.50, and palladium added 1.9% to $1,436.25.
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