Gold prices stabilized on Monday after reaching their highest level in six weeks, as global markets experienced an early wave of risk aversion. Investors are now focused on the possibility of a U.S. interest rate cut later this month, while silver surged to a historic record.
Spot gold edged up by 0.1% to $4,235.59 per ounce, after hitting its highest level since October 21. U.S. gold futures for December delivery rose 0.3% to $4,269.40 per ounce.
Silver climbed 1.1% to $56.99 per ounce, after briefly touching an all-time high of $57.86 earlier in the session.
Fed signals reinforce rate-cut expectations
The U.S. dollar fell to its lowest level in two weeks, making dollar-priced gold more attractive for holders of other currencies.
Dovish comments from Federal Reserve Governor Christopher Waller and New York Fed President John Williams, combined with weaker-than-expected U.S. economic data, have strengthened expectations of a possible rate cut in December.
According to the CME FedWatch Tool, markets are now pricing in an 87% chance of a rate cut this month.
Precious metals rally continues
Markets are awaiting Friday’s release of the U.S. core Personal Consumption Expenditures (core PCE) index for further clues on the Federal Reserve’s monetary policy path.
Gold—an asset that yields no interest—typically benefits when borrowing costs fall. Other precious metals also advanced, with platinum gaining 1.3% to $1,694.18, and palladium rising 1.4% to $1,471.94.
What's happening in Tunisia?
Subscribe to our Youtube channel for updates.
