Gold Rises Supported by Expectations of US Interest Rate Cuts and Dollar Decline

SadaNews - Gold prices rose during trading on Monday, benefiting from growing expectations that the US Federal Reserve will cut interest rates this week, which has led to increased pressure on the dollar.

Gold increased in spot transactions by 0.4% to record $4215.38 per ounce.

In contrast, December futures contracts for gold settled at $4243.70 per ounce.

The US dollar declined, approaching its lowest level in six weeks, a level it reached on December 4, which makes gold priced in dollars less expensive for holders of other currencies.

Recent data showed that consumer spending in the United States rose moderately in September, following three months of strong gains, reflecting a slowdown in economic momentum by the end of the third quarter, due to a weak labor market and rising living costs.

This follows the release of private sector payroll data, which recorded the largest decline in more than two and a half years last month.

Statements leaning towards easing made by several Federal Reserve officials also bolstered expectations for an interest rate cut. The CME’s "FedWatch" tool indicates an 88.4% probability of a 25 basis point interest rate cut at the Federal Reserve meeting on December 9 and 10.

Regarding other precious metals, silver remained stable at $58.25 per ounce, while platinum rose by 0.3% to reach $1646.56 per ounce, whereas palladium fell by 0.5% to record $1455.55 per ounce.