Gold Poised for Fourth Monthly Gain on Fed Rate-Cut Optimism
Gold rose, on track for a fourth monthly gain, on heightened expectations for another interest-rate cut in the US. Silver advanced to within a dollar of a record.
Gold was trading around $4,190 an ounce on Friday, up nearly 5% for the week. A series of comments by Federal Reserve officials and the release of delayed economic data have supported the case for lower borrowing costs, which typically benefit gold as it doesn’t pay interest. Swap traders are pricing in a more-than-80% chance of a quarter-point cut in December.
Gold has Gained Nearly Every Month in 2025Central bank buying, inflows to ETFs and Fed easing are among the factors
Traders will be digesting every last clue for the next rate decision before the US central bank goes into an external communication blackout starting Saturday. A record-setting government shutdown has delayed key data, and some statistics will not be released at all, making it challenging for the Fed and investors to assess the state of the world’s largest economy.
Bullion has gained nearly every month this year, and is on track for its best annual performance since 1979. Elevated central-bank buying as well as robust non-sovereign inflows to exchange-traded funds supported the metal’s run to a record above $4,380 last month. Investors have piled into alternative assets in a wider retreat from sovereign bonds and currencies.
This month, the precious metal has consolidated above the $4,000-an-ounce level since pulling back from its peak. For the last four weeks, inflows to gold-backed ETFs have been flat, according to Bloomberg calculations.
Silver rose as much as 1%, approaching the record set last month, supported by ongoing supply tightness as well as inflows to ETFs and rate-cut prospects.
Gold rose 0.8% to $4,190.17 an ounce as of 10:03 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Platinum edged up after jumping 1.6% on Thursday as new futures contracts in China aided demand. Palladium also increased.
Source : Bloomberg.com
