Quick overview

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The bullion metal maintains a somewhat optimistic tone going into Tuesday’s European session, but finds it difficult to build on a slight intraday increase to a one-and-a-half-week high.

Traders increased their bets for another interest rate cut by the US Federal Reserve (Fed) in December, which continues to support the non-yielding yellow metal following recent remarks from key FOMC members.

 

Ongoing geopolitical uncertainties brought on by the escalating conflict between Russia and Ukraine, as well as new conflicts in the Middle East, prove to be another factor favoring the safe-haven commodity.

In the meantime, the US dollar (USD), which rose last week despite dovish Fed expectations, is currently near its highest level since late May and is hurting gold. Additionally, a generally optimistic outlook for the stock markets helps to limit the precious metal’s upside. Additionally, traders appear hesitant and choose to wait for crucial US macro data.

John Williams, president of the New York Federal Reserve, stated on Friday that interest rates could drop soon without jeopardizing the central bank’s inflation target. Furthermore, Fed Governor Christopher Waller stated that another quarter-point rate cut in December is justified due to the poor state of the labor market. The futures-market-implied probability of a 25 basis point rate reduction to a range of 3.50 percent to 3.75 percent in December is currently approximately 80 percent, according to CME Group’s FedWatch tool.

This gives support to the non-yielding gold and prevents the US dollar from building on last week’s powerful surge to a multi-month high. Early on Tuesday, November 25, 2025, Russia launched a series of attacks on Kyiv, the capital of Ukraine, targeting residential structures and energy infrastructure.

The attack comes after discussions about a US-brokered plan to end a nearly four-year-old conflict took place over the weekend in Switzerland between representatives of the US and Ukraine.