Gold Prices Surge to Three-Week High Amid Monetary Easing Expectations

On November 13, precious metal markets experienced a notable increase, with gold prices climbing to their highest level in more than three weeks. Spot gold rose by 0.7% to $4,229.19 per ounce, the highest since October 21. U.S. gold futures for December also saw a gain of 0.5%, reaching $4,234.10 per ounce.

This rise follows the signing of legislation by U.S. President Donald Trump that ended the longest government shutdown in U.S. history, which lasted 43 days. The agreement funds federal operations until January 30, but estimates suggest it will add $1.8 trillion annually to the existing $38 trillion U.S. debt.

Hugo Pascal, a precious metals trader at "In Proved," commented on the market trends, stating: "Precious metal prices are rising alongside equities, as traders anticipate cautious trends. The reopening of the U.S. government is unlikely to significantly alter the trajectory, especially with forecasts suggesting it will contribute to rising debt levels." He added, "Actual demand for silver and gold remains strong, and recent U.S. economic indicators show weak growth, creating a favorable combination for precious metal prices."

This development comes as Jerome Powell, the Federal Reserve Chair, warned that there may not be further monetary easing this year, following a 25 basis point rate cut last month. Economists are urging the prioritization of employment and inflation reports to provide timely data for Fed officials ahead of their meeting next month.

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 hopes for lower U.S. interest rates.

Other precious metals also showed mixed performance, with silver increasing by 0.6% in spot transactions to $53.70 per ounce, nearing its historical high, while platinum dipped by 0.1% to $1,613.17, and palladium fell by 0.5% to $1,466.05.