Metals on the rise: Gold, silver, and platinum gaining value
Gold (photo: flickr.com, National Bank of Ukraine)
Gold prices rose more than 1% on Monday amid expectations of a US Federal Reserve interest rate cut and the upcoming release of key economic data, according to Reuters.
Gold price increas
The spot price of gold climbed 1.2% to $4,111.86 per ounce by 1:43 p.m. Eastern Time (18:43 GMT), while December futures in the US rose 0.4% to $4,094.20 per ounce.
“The market is increasingly getting convinced that the U.S. Federal Reserve is on track to cut interest rates in December,” said Bart Melek, head of commodity strategies at TD Securities.
Federal Reserve policy and investor expectations
New York Fed President John Williams stated that an interest rate cut could occur soon, while inflation targets will remain unchanged, and the labor market will not be adversely affected.
The probability of a rate cut next month is estimated at 79% according to the CME FedWatch tool.
As a non-yielding asset, gold traditionally performs well during periods of low interest rates and maintains demand amid geopolitical and economic uncertainty.
Impact of economic data
Investors are awaiting key data delayed due to government operations, including retail sales, unemployment claims, and producer price data.
Analysts predict that the figures could come in below expectations, further supporting gold prices.
Bart Melek added that everything pointed to gold showing quite strong performance.
Other precious metals
Spot silver rose 1.7% to $50.84 per ounce, platinum increased 2.3% to $1,545.91, and palladium gained 1.7% to $1,398.21.
Geopolitical factor
Prices are also influenced by the geopolitical situation: the US and Ukraine continue negotiations to develop an acceptable plan to end Russia’s war in Ukraine, adding uncertainty to the markets.
Analysts estimate that gold will likely fluctuate in the near term between $4,000 and $4,100 per ounce.
On Tuesday, November 11, gold prices continued to rise, reaching a nearly three-week high amid investor expectations of a US Federal Reserve rate cut in December and signs of the government shutdown ending. Spot gold reached $4,131.32 per ounce, the highest level since October 23.
As of November 3, spot gold was at $4,000.65 per ounce, and December US futures rose 0.4% to $4,010. The metal’s price had fallen nearly 9% from the record high of $4,381.21 recorded on October 20, driven by a stronger US dollar reaching a three-month peak.
