Gold Prices Rise on Anticipation of U.S. Interest Rate Cuts
Gold prices saw a significant increase during trading on Wednesday, supported by rising expectations in financial markets regarding a possible interest rate cut by the U.S. Federal Reserve in December.
The price of gold rose by 0.7%, reaching $4,161.19 per ounce, while December gold futures increased by 0.5% to $4,163.70.
This rise coincides with improved investor sentiment, as data from CME indicates that markets currently expect an 84% likelihood of the Federal Reserve cutting interest rates next month, up from just 50% last week.
On the geopolitical front, prices faced some pressure following Ukrainian President Volodymyr Zelensky's announcement of his country's readiness to advance a U.S.-backed framework to end the war with Russia. Zelensky stated that "points of disagreement will be discussed in talks with U.S. President Donald Trump and with the involvement of European allies."
It is important to note that gold, as a non-yielding asset, typically benefits from a low interest rate environment and periods of geopolitical tension.
Later today, the U.S. is expected to release its weekly jobless claims report, which investors are closely monitoring for additional insights into the health of the U.S. economy.
In related metals, performance varied, with silver in spot transactions falling by 0.1% to $51.36, platinum decreasing by 1% to $1,538, and palladium dropping by 1.1% to $1,382.24.
