New York: Gold prices surged this week as investors increasingly bet on a Federal Reserve rate cut in December.
The anticipation of monetary easing has boosted the precious metal’s appeal as a safe-haven asset, driving demand from both institutional investors and central banks.
Gold Price Surge Linked to Fed Policy
Spot gold climbed to $4,255.04 per ounce, its highest level in six weeks, while U.S. gold futures for February delivery rose 0.8% to $4,290.40.
Analysts note that expectations of a dovish Federal Reserve stance are fueling bullish sentiment across global bullion markets.
Investor Sentiment and Market Trends
UBS analyst Giovanni Staunovo explained, “Market participants are now starting to price in a rate cut for the Fed in December. The expectation that the new FOMC chairman will be more dovish is supporting investment demand for gold.”
Silver also benefited, hitting a record high of $57.86 per ounce, underscoring strong industrial demand.
Global Demand and Central Bank Activity
Major banks including UBS, Commerzbank, Morgan Stanley, and Goldman Sachs have identified Fed policy as a key driver of gold demand.
Central banks worldwide have increased their gold holdings, viewing the metal as a hedge against economic uncertainty and dollar weakness.
Source and Market Outlook
According to CryptoBriefing, markets are pricing in a high likelihood of Federal Reserve easing in December, with expectations extending into 2026.
Analysts forecast continued upward momentum for gold, supported by central bank demand, geopolitical risks, and investor interest in non-yielding assets.
With Treasury yields near one-month lows and the dollar under pressure, gold’s safe-haven role is expected to remain strong.
Traders anticipate further volatility but believe the broader trend points toward sustained gains in precious metals.
