Gold Prices Climb on Anticipation of US Interest Rate Cuts Amid Economic Concerns
Gold prices rose significantly on Monday, buoyed by expectations that the US Federal Reserve (the Fed) may lower interest rates in December, amid growing concerns over economic performance.
In spot trading, gold increased by 1.3% to $4,053.00 per ounce, while US gold futures for December delivery climbed 1.2% to $4,060.40 per ounce.
These gains were supported by recent US economic data that weakened market confidence. Reports indicated job losses in October, particularly in the government and retail sectors, with companies announcing layoffs due to cost-cutting measures and increased reliance on artificial intelligence.
Investor concerns intensified after a survey released Friday revealed that consumer sentiment in the US fell to its lowest level in nearly three and a half years in early November, largely due to anxieties surrounding the longest government shutdown in US history.
Expectations regarding the Fed's monetary policy remain a key driver for gold prices. The CME Group's "FedWatch" tool indicates a 67% probability that the Fed will implement interest rate cuts in December.
Gold, which does not generate interest, is often viewed as a safe-haven asset during periods of low interest rates and economic uncertainty, making it appealing to investors in the current environment.
In related news, the US Senate appeared poised to advance legislation aimed at reopening the federal government and concluding the ongoing 40-day shutdown, a move that could enhance market stability.
Other precious metals also experienced gains, with silver rising by 1.1% to $48.84 per ounce, platinum increasing by 1.2% to $1,563.25, and palladium climbing by 1.2% to $1,396.75.
