Gold Climbs as Rate Cut Bets Strengthen
Gold prices surged on Monday, reaching their highest level in nearly two weeks as disappointing U.S. economic data increased expectations of an interest rate cut by the Federal Reserve next month. A softer U.S. dollar also played a key role in pushing bullion higher.
According to market data, spot gold rose 2.1% to $4,082.17 per ounce, its strongest level since October 27.
Meanwhile, U.S. gold futures for December delivery gained 2%, trading at $4,090.50 per ounce.
Dollar Weakens, Metal Gains
The U.S. dollar index slipped 0.1%, making gold cheaper for buyers in international markets and encouraging safe-haven demand.
Analyst Jigar Trivedi of Reliance Securities said investors are increasingly concerned about the weakening U.S. economy, rising geopolitical tensions, and trade disputes — all of which are driving more buyers toward gold.
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Signs of Slowdown in the U.S. Economy
Fresh data has painted a gloomy picture for the United States:
- Job losses reported in October, especially in retail and government sectors
- Consumer sentiment at its lowest point in 3.5 years
- Economic strain linked to the longest federal government shutdown in U.S. history
The U.S. Senate has now moved forward with a bill to reopen the government after 40 days of closure, but economists warn the damage may already be visible.
White House economic adviser Kevin Hassett cautioned that fourth-quarter growth may turn negative if disruption continues.
Rate Cut Odds Increase
Financial markets now estimate a 65% probability of a Federal Reserve rate cut in December.
Gold — which does not pay interest — typically becomes more attractive when interest rates fall or when economic uncertainty grows.
In a market outlook, Saxo Bank noted that gold could potentially reach $5,000 per ounce within the next year, although analysts remain cautious about short-term spikes.
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Silver and Other Metals Rally
- Silver jumped 3.4% to $49.95, the highest since October 21
- Platinum rose 1.7% to $1,571.10
- Palladium gained 2.2% to $1,410.48
Precious metals have seen strong investor interest amid rising inflation fears and geopolitical risks.
