Gold poised for fourth monthly gain on Fed rate cut optimism

NEW YORK (November 28) Gold prices rose on Friday to a two-week high and were on track for a fourth straight monthly rise on optimism over a possible U.S. Federal Reserve rate cut in December.

Meanwhile, an outage at CME Group (CME.O), stopped trade on its currency platform and in futures spanning foreign exchange, commodities, Treasuries and stocks. U.S. gold futures for December delivery were at $4,221.30 per ounce ahead of the outage.

Spot gold rose 0.4% to $4,174.15 per ounce by 1140 GMT, its highest since November 14, and was set for a 2.7% weekly gain. Bullion is set to register a 3.9% rise this month.

"The underlying sentiment (in gold) remains very positive... There are concerns about global debt, tariffs and sanctions" while ongoing central bank buying has also been driving gold's rally this year, said independent analyst Ross Norman.

Gold, a non-yielding asset, tends to do well in low-interest rate environments. Traders are now pricing in an 85% chance of a rate cut in December, up from 50% a week earlier.

Comments from heavyweights like Fed Governor Christopher Waller and New York Fed President John Williams, as well as the release of soft U.S. economic data after the government shutdown, have reinforced expectations that the central bank will trim interest rates next month.

The U.S. dollar was headed for its worst week since late July. A weaker greenback makes dollar-priced gold more attractive for buyers using other currencies.

Elsewhere, UBS raised its silver price forecast by $5 to $8/oz and said it expects the metal to trade at $60/oz in 2026.

Spot silver rose 0.8% to $53.86 per ounce and platinum gained 2.3% to $1,645.60, with silver up 7.7% and platinum 8.8% for the week, respectively. Palladium gained 2.6% to $1,478.76 and was set for a 7.6% weekly gain.

KitcoNews