Gold prices climbed in global markets on Monday, 24 November, as investors anticipated a potential interest rate cut by the U.S. Federal Reserve. The surge reflects growing market confidence that a reduction in rates could stimulate economic activity and support precious metals as a safe-haven asset.
At 1:43 PM local time, the price of spot gold rose by 1.2 per cent, reaching $4,111.86 per ounce. Meanwhile, U.S. gold futures for December delivery increased by 0.4 per cent to settle at $4,094.20 per ounce. Analysts attribute the rally to expectations of lower interest rates and relatively moderate inflation figures anticipated in the coming months.
Bart Melek, Head of Commodity Strategy at TD Securities, noted that market sentiment is increasingly confident that the Federal Reserve will implement a rate cut in December. “We are waiting for the data, and it is expected that inflation may not be too high. All of these factors suggest an upward trend in gold prices,” Melek said.
The CME FedWatch Tool indicated a 79 per cent probability of a U.S. interest rate cut in September, highlighting the market’s growing expectations for monetary easing.
Rona O’Connell, an analyst at StoneX, added that global uncertainty, particularly geopolitical tensions related to Ukraine, could further support gold prices. However, she cautioned that the price is likely to fluctuate within a range of $4,000 to $4,100 per ounce.
Other precious metals also saw gains on Monday. Spot silver rose 1.7 per cent to $50.84 per ounce, while platinum advanced 2.3 per cent, reaching $1,545.91 per ounce. These increases are consistent with investor demand for metals as hedges against economic volatility and geopolitical instability.
| Metal | Price Change | New Price (per ounce) |
|---|---|---|
| Gold (spot) | +1.2% | $4,111.86 |
| Gold (futures) | +0.4% | $4,094.20 |
| Silver (spot) | +1.7% | $50.84 |
| Platinum | +2.3% | $1,545.91 |
As global investors closely monitor U.S. monetary policy, gold and other precious metals are likely to remain sensitive to any signals regarding interest rate adjustments and economic conditions, making them key indicators of market sentiment.