Gold Rises as Dollar's Rise Slows

Gold prices rose in trading on Monday, benefiting from the stability of the US dollar below its highest level in 3 months. Although markets have lowered their expectations for the pace of interest rate cuts by the Federal Reserve in December, and the recent easing of US-China trade tensions, the precious metal has maintained a limited upward trend.

Spot gold recorded an increase of 0.3% to reach $4015.03 per ounce, while US gold futures for December delivery rose 0.77% to $4027.10.

Kelvin Wong, senior market analyst at "OANDA," stated that part of the movement is due to a repositioning in dollar investments, adding that the stability of the US currency during the Asian session provided slight momentum for gold.

US Interest Rate Expectations Ease

The Fed had implemented a second interest rate cut this year of 25 basis points at the end of October, but the stern tone of its chairman Jerome Powell later prompted markets to revise their bets. The chances of an interest rate cut in December have dropped to 71% from over 90% previously, according to the "FedWatch" tool from the Chicago Exchange.

Markets will monitor this week the "ADP" employment data and US purchasing managers' indices, looking for additional signals that may change the Fed's stance.

Risk Appetite Advances and Safe Havens Decline

Demand for safe havens has decreased as trade tensions between Washington and Beijing have eased, especially after US President Donald Trump agreed to lower tariffs on China in exchange for concessions involving the "fentanyl" issue and agricultural and mineral files.

Performance of Other Precious Metals:

Spot Silver: +0.47% to $48.9 per ounce

Platinum: +2.36% to $1608.55

Palladium: +1.22% to $1457.28



Oil: Price Stability After OPEC+ Decision to Suspend Increases at the Beginning of 2026

In energy, oil prices stabilized in Asia following the OPEC+ decision to maintain the increase in December at 137,000 barrels per day, the same increases as in October and November, while suspending any new increases in the first quarter of 2026.

Brent stabilized at $64.77 per barrel, while US crude was traded at $60.94.

Helima Croft, an analyst at "RBC Capital," believes that the lack of clarity regarding supply flows in the first quarter of next year, along with expectations of weak demand, justifies a cautious approach.

Drone attacks on Russian energy infrastructure remain part of the risk landscape, following the targeting of the "Tuapse" port on the Black Sea yesterday.

Despite this… the oil market recorded a monthly loss exceeding 2% for the third consecutive month, coinciding with a record increase in US oil production to 13.8 million barrels per day.

US President Donald Trump also denied considering strikes inside Venezuela, amid expectations in Washington to expand its operations related to drug issues.