Gold Price Hits Three-Week High Amid Continued Monetary Easing Expectations
On November 13, gold prices experienced a significant increase, reaching their highest point in over three weeks. The spot price of gold rose by 0.7% to $4,229.19 per ounce, marking the highest level since October 21. Meanwhile, December gold futures climbed 0.5% to $4,234.10 per ounce.
This rise followed the signing of a bill by U.S. President Donald Trump, which ended a 43-day government shutdown—the longest in U.S. history—delaying the release of key economic data. The agreement funds federal agencies until January 30, but estimates suggest it will add $1.8 trillion to the existing U.S. debt burden of $38 trillion.
Hugo Pascal, a precious metals trader at In Provd, commented on the situation, stating, "Precious metal prices are rising alongside stocks as traders anticipate cautious trends. The reopening of the U.S. government is not expected to significantly alter prices, given that it may contribute to rising debt levels." He added, "Actual demand for silver and gold remains strong, and recent U.S. economic data suggests weak growth, creating a favorable environment for precious metal prices."
This development comes as Jerome Powell, Chairman of the Federal Reserve, warned of the possibility that no further monetary easing may occur this year after the central bank lowered interest rates by 25 basis points last month. Economists are urging prioritization of job and inflation reports to provide updated information to Federal Reserve officials ahead of their next meeting.
Notably, 80% of economists surveyed by Reuters expect the U.S. central bank to lower the benchmark interest rate again by 25 basis points next month to support the weak labor market.
It is important to note that gold prices have risen by 61% since the beginning of the year, reaching an all-time high of $4,381.21 on October 20, driven by geopolitical tensions, trade disputes, and expectations of interest rate cuts in the U.S.
Other precious metals showed mixed performance, with silver rising by 0.6% to $53.70 per ounce, nearing its all-time high, while platinum fell by 0.1% to $1,613.17, and palladium decreased by 0.5% to $1,466.05.
