Gold Retreats from Three-Week High Amid Federal Decision Anticipation

SadaNews - Gold prices fell during trading on Monday from their highest level in about three weeks, as investors sought to take profits amid increasing expectations for a cut in U.S. interest rates later this month, while silver recorded a new all-time high.

Gold dropped in spot transactions on Monday morning by about 0.1% to $4,225.19 per ounce after touching its highest level since November 13 on Friday, noting that its price at that time reached $4,241.89 per ounce.

Meanwhile, U.S. gold futures for December delivery rose by 0.1% to $4,261.00 per ounce.

Silver surged in spot transactions by 2.2%, marking a new high at $57.59 per ounce.

Markets currently expect an 87% probability of an interest rate cut this month, according to the CME Group's "FedWatch" tool.

Recent statements from Christopher Waller, a member of the Federal Reserve Board, and John Williams, President of the Federal Reserve Bank of New York, alongside weak economic data following the recent government shutdown, have bolstered expectations for a rate cut this month.

Gold, which does not yield a return, typically benefits in a low-interest-rate environment and during periods of geopolitical uncertainty.

Investors are awaiting data on the manufacturing and private sector employment in the United States, set to be released this week, to assess the likelihood of a rate cut at the forthcoming Federal Reserve meeting on December 10.

The dollar held steady near its lowest level since November 17, making the dollar-denominated yellow metal less expensive for holders of other currencies.

In other precious metals, platinum fell by 0.2% to $1,669.15, while palladium rose by 2.3% to $1,483.51.