Quick Takeaways
- Gold struck a two-week efflorescence as weak US data toned Fed rate cut expectations.
- Silver derails over 4%, hitting its lowest level since October 21.
- Markets forthwith price in a 64% hazard of a December rate cut.
Gold Prices Surge as Rate Cut Bets Strengthen
Gold prices leap nearly 3% on Monday, hitting their highest level since October 24. The rally issue forth after a series of weak US economic reports fueled hopes that the Federal Reserve would cut interest rates before long than expected.
Spot gold wax 2. 8% to $, 111. 39 per ounce as of 2:21 p.m. ET, while US gold futures for December delivery settled at $4,122. 00 per ounce.
Weak US Data Sparks Dovish Market Shift
Recent US data showed the economy lost jobs in October, especially in the government and retail sectors. Consumer sentiment also slumped in early November as households grew more concerned about economic conditions.
“Some weak data last week has the market tilting a little more dovish in their Fed expectations,” said Peter Grant, senior metals strategist at Zaner Metals. “We could still see a December rate cut.”
According to the CME FedWatch Tool, traders now see a 64% chance of a December rate cut and 77% odds by January.
Gold Gains From Lower Rate Outlook
Gold tends to perform well in a low-interest-charge per unit environment, as it gets more attractive compared to output containers. The latest grocery opinion has revived a bullish prognosis for the yellowed metal.
Grant said gold could trade between $4,200 and $4,300 per ounce by year-end, with $5,000 per ounce possible in early 2026 if rate cuts materialize.
Senate Advances Shutdown Bill, Adds to Optimism
Adding to the positive sentiment, the US Senate advanced a bill on Sunday to end the 40-day federal government shutdown. The move lifted market confidence and restored data flow, which could influence the Fed’s next steps.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that reopening the government “shifts market focus back to the deteriorating US fiscal outlook.”
Silver and Other Metals Rally
The rally exceeded gold. Silver surged 4. 5% to $50. 46 per ounce, it’s been gamey since October 21. Platinum resurrected 2. 4% to $1 582. 50, while palladium attained. 1% to $1 422. 79.
With inflation concerns easement and the economy showing cracks, investors are betting that the Fed will pivot to a pace-cutting move that could sustain gold’s up impulse into the New year.