Investors drive gold to a six-week high as silver hits records on growing US rate-cut bets
Gold climbed to a six-week high on Monday while silver set fresh records, as traders leaned harder into US rate-cut bets and pushed the dollar lower — a backdrop that matters for portfolios heavily exposed to interest-rate risk and inflation-sensitive assets.
Spot gold edged higher to as much as US$4,241.27 per ounce, its highest level since October 21, with prices up 0.3 percent as of 1:44 pm ET, reported Reuters.
US gold futures for February delivery settled 0.5 percent higher at US$4,274.80, Reuters said, while CNBC also noted gains in both spot prices and futures.
Silver outperformed.
Spot prices rose 3.8 percent to US$58.57 per ounce after touching an all-time high of US$58.83 earlier in the session, and the metal has more than doubled so far this year, according to Reuters.
CNBC likewise reported that silver hit an all-time high.
Both outlets said the US dollar slipped to a two-week low, making gold more affordable for holders of other currencies and reinforcing demand for the metal.
Policy expectations remain central to the move.
Traders now assign an 87 percent probability to a December rate cut after softer US economic data and dovish comments from US Federal Reserve officials, including Governor Christopher Waller and New York Fed President John Williams, according to Reuters.
Lower interest rates tend to favour non-yielding assets such as gold, both outlets noted.
“The underlying environment of expectations of further rate cuts … is still the underlying support in gold and silver,” said David Meger, director of metals trading at High Ridge Futures, in comments reported by Reuters.
He said lingering inflation above the Fed’s target is also helping to support both metals.
Meger also said that “the expectation that the next Fed Chair is going to be more dovish than previous ones is also supporting gold and silver,” and added, “We still view gold and silver in a strong sideways to higher uptrend.”
Investors are also watching upcoming US macro data closely.
Market participants are focusing on November ADP employment figures due Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index — described as the Fed’s preferred inflation gauge — scheduled for Friday, as reported by Reuters.
Fed Chair Jerome Powell’s remarks later on Monday are expected to provide further policy clues, both outlets said.
Leadership signals at the central bank are adding another layer to the outlook.
White House economic adviser Kevin Hassett said on Sunday that, if chosen, he would be happy to serve as the next Fed chairman, while US Treasury Secretary Scott Bessent indicated a new chair could be named before Christmas, according to Reuters.
Among other precious metals, platinum slipped 0.7 percent to US$1,660.69 and palladium fell 2.1 percent to US$1,431.52.
