Gold prices rose in European trading on Monday, extending gains for a second consecutive session and reaching a six-week high, supported by strong safe-haven demand and a weaker US dollar in the foreign-exchange market.
Despite strong expectations that the Federal Reserve will cut interest rates this December, investors are awaiting additional key US economic data.
Price Overview
• Gold prices today: Gold rose 0.9% to 4,256.52 — the highest level since 21 October — from an opening of 4,218.00, after recording an intraday low of 4,205.73.
• On Friday, gold settled 1.5% higher, marking its second gain in three sessions, supported by weakness in the US dollar.
• Over November, gold gained 5.4%, its fourth straight monthly advance, driven by strong safe-haven demand amid persistent global uncertainty.
US Dollar
The US dollar index fell around 0.2% on Monday, deepening losses for a sixth straight session and hitting a two-week low, reflecting continued pressure on the greenback against major global currencies.
This decline followed a series of weak US economic data releases and cautious comments from Federal Reserve officials, which pushed rate-cut expectations for December sharply higher.
US Interest Rates
• Several Fed officials — including New York Fed President John Williams and Governor Christopher Waller — signaled that policy easing in December could be justified due to labor-market weakness.
• Kevin Hassett, now considered the leading contender to succeed Jerome Powell as Fed Chair, said rates “should be lower.”
• According to CME’s FedWatch Tool:
– The probability of a 25-basis-point rate cut in December stands at 87%.
– The probability of holding rates steady is at 13%.
• Investors will closely monitor upcoming US economic releases this week for further clarity on the Fed’s path.
Gold Outlook
Kelvin Wong, market analyst for Asia-Pacific at Oanda, said risk-off sentiment is dominating US stock-index futures — down 0.8% — in line with heavy selling across major cryptocurrencies. This created a positive feedback loop for gold as a safe-haven asset, especially during a low-liquidity trading session.
SPDR
Gold holdings at SPDR Gold Trust, the world’s largest gold-backed ETF, were unchanged on Friday for a second day, with total holdings steady at 1,045.43 metric tons — the highest level since 13 November.
