Gold Prices Rise as Interest Rate Cuts and Global Risks Loom

Gold prices have risen for the fourth consecutive day, approaching their highest levels in three weeks. This increase is supported by expectations of a U.S. interest rate cut next month and a rise in global political and economic risks.

On Wednesday morning, spot gold increased by 0.4% to $4,142.70 per ounce, while December futures rose by 0.8% to $4,149.20, according to data from Investing.com.

UBS analysts predict prices could continue to rise, potentially exceeding $4,700 per ounce in the first quarter of 2026, despite a temporary boost in investor sentiment following the resolution of the longest government shutdown in U.S. history.

Analysts from NZ Bank noted that the price increase is driven by growing demand for safe-haven assets amid trade uncertainties and economic slowdowns, while rising public debt worldwide provides additional support for the yellow metal.

The World Gold Council reported that global gold demand reached a record high in the third quarter of 2025, fueled by strong investment flows and a resurgence in central bank purchases, making this year the strongest since 2011.