Gold Reaches Three-Week High Amid Continued Monetary Easing Expectations
On November 13, precious metal markets experienced a notable surge, propelling gold to its highest level in more than three weeks. Spot gold rose 0.7% to $4,229.19 per ounce, marking its peak since October 21. Additionally, U.S. gold futures for December increased by 0.5% to $4,234.10 per ounce.
This upward trend followed the signing of legislation by President Donald Trump that ended the longest government shutdown in U.S. history, lasting 43 days. The agreement funds federal operations until January 30, although estimates suggest it will add $1.8 trillion annually to the U.S. debt burden of $38 trillion.
Hugo Pascal, a precious metals trader at "En Proved," commented on the market dynamics: "Precious metal prices are rising alongside equities as traders continue to anticipate cautious trends. The reopening of the U.S. government is not expected to significantly alter the trajectory amid expectations of increased debt levels." He added, "Actual demand for silver and gold remains robust, and recent U.S. economic indicators suggest weak growth, which is a favorable combination for precious metal prices."
This development comes as Jerome Powell, Chair of the Federal Reserve, warned of the possibility of no further monetary easing this year, following a quarter-point interest rate cut last month. Economists are urging the prioritization of employment and inflation reports to provide updated information to Federal Reserve officials ahead of their meeting next month.
As a market indicator, 80% of economists surveyed by "Reuters" expect the U.S. central bank to cut the key interest rate by another 25 basis points next month, in response to a weak labor market.
Notably, gold has risen 61% since the beginning of the year, reaching an all-time high of $4,381.21 on October 20, driven by geopolitical tensions, trade issues, and expectations of U.S. interest rate cuts.
Other precious metals showed mixed performance, with silver rising 0.6% to $53.70 per ounce, nearing its all-time high, while platinum fell 0.1% to $1,613.17, and palladium decreased by 0.5% to $1,466.05.
