Spot Gold scaled a fresh six-week peak of $4,256.60/oz. on Monday, supported by rising expectations of an interest rate cut by the Federal Reserve this month.
Fed Governor Christopher Waller said last week that the US job market was weak enough to warrant another 25 basis point rate cut in December.
Also, New York Fed President John Williams said that a near-term rate cut remained possible, with labor market weakness posing a higher risk than elevated inflation.
And, Kevin Hassett, seen as a frontrunner to succeed Jerome Powell, has echoed US President Trump’s support for rate cuts.
Markets are now pricing in about an 87% chance of a 25 basis point Fed rate cut in December, compared to an 80% chance a week earlier.
Markets are also pricing in three additional rate cuts by the end of 2026.
Delayed US macro data also added to expectations of a December cut.
Lower interest rates tend to reduce the opportunity cost of holding Gold, which pays no interest.
Spot Gold was last up 0.59% on the day to trade at $4,240.84 per troy ounce.
Strong central bank buying, US tariff policies, potential rate cuts by the Federal Reserve, robust ETF inflows and geopolitical uncertainty have fueled Gold’s rally to a series of record highs this year. Its current all-time high stands at $4,381.21/oz.
Gold looked set to register its best annual performance since 1979.
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