Gold Prices Rise Amid Expectations of U.S. Interest Rate Cuts
Gold prices experienced a significant rise during trading on Wednesday, buoyed by increasing market expectations for a potential interest rate cut by the U.S. Federal Reserve in December.
Gold was trading at $4,161.19 per ounce, reflecting a 0.7% increase, while December gold futures rose by 0.5% to $4,163.70.
This uptick coincides with improved investor sentiment, as data from CME indicates that markets currently anticipate an 84% chance of the Fed lowering interest rates next month, up from just 50% the previous week.
On the geopolitical front, gold prices faced some pressure after Ukrainian President Volodymyr Zelensky announced that Ukraine is prepared to engage in a U.S.-backed framework to end the war with Russia. Zelensky stated that "points of contention will be discussed during talks with U.S. President Donald Trump in the presence 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 on Wednesday, the U.S. is set to release a report on weekly unemployment claims, which investors are watching for further insights into the health of the American economy.
In related developments, other precious metals showed mixed performance, with silver declining by 0.1% to $51.36 in spot trading, while platinum fell by 1% to $1,538, and palladium dropped by 1.1% to $1,382.24.
