Gold Prices Inch Higher as Fed Rate-Cut Expectations Strengthen

Gold prices ticked upward in Asian trading on Monday as the U.S. dollar hovered near a five-week low, reflecting growing market confidence that the Federal Reserve will cut interest rates this week. Spot gold rose 0.3% to $4,208.55 an ounce by 03:28 ET (08:28 GMT), while U.S. gold futures for February dipped 0.3% to $4,2371.10.

The precious metal found support from a softer dollar, which made gold more appealing to international buyers. The dollar’s decline has been largely driven by expectations that the Fed will deliver a quarter-point rate cut at its upcoming Dec. 9–10 meeting. Sentiment has been bolstered by a stream of weaker U.S. economic data, including a subdued private payroll report and signs of slowing labor-market momentum. Additionally, the delayed core Personal Consumption Expenditures (PCE) index—the Fed’s preferred inflation gauge—showed only modest monthly growth and further easing on an annual basis.

Lower interest rates typically boost gold by reducing the opportunity cost of holding non-yielding assets, and a weaker dollar adds further support by making bullion cheaper globally. However, gains remained muted as Treasury yields have risen in recent sessions, countering some of gold’s upward momentum. Investor caution also persists due to mixed signals from Fed officials, with some policymakers warning against moving too quickly on rate cuts. This divergence has injected uncertainty and kept traders on edge ahead of the Fed’s decision and Chair Jerome Powell’s upcoming press conference.

In broader metals markets, price movements were subdued. Silver futures slipped 0.6% to $58.708 per ounce, and platinum futures eased 0.3% to $1,663.60. Copper traded mixed, with LME benchmark futures up 0.3% at $11,681.20 a ton, while U.S. copper futures fell 0.7% to $4.67 a pound.