Gold prices rose on Monday (November 24), supported by growing expectations that the U.S. Federal Reserve (Fed) will cut interest rates next month and by a weakening U.S. dollar.
At the end of the trading session on November 24, spot gold gained 1.2% to 4,113.59 USD/oz. Gold futures added 0.9% to 4,115.4 USD/oz.
The U.S. dollar index weakened, making dollar-denominated gold less expensive for holders of other currencies.
The market is increasingly convinced that the Fed is very likely to cut interest rates in December 2025. The combination of lower interest-rate expectations and a weaker dollar has supported gold prices.
New York Fed President John Williams said on November 21 that U.S. interest rates could fall “in the near term” without jeopardizing the Fed’s inflation target, while also helping prevent a deterioration in the labor market.
The CME FedWatch Tool shows that the market is currently pricing in a 79% probability that the Fed will cut rates next month.
Gold, a non-yielding asset, tends to perform well in a low-interest-rate environment and during periods of geopolitical uncertainty.
Investors are paying attention to key U.S. economic data that has been delayed due to the government shutdown, including retail sales, jobless claims, and producer price figures, which are expected to be released later this week.
Meanwhile, the United States and Ukraine continued negotiations on Monday to develop a viable plan to end Russia’s war in Ukraine, after agreeing to revise an earlier U.S. proposal that many considered overly favorable to Moscow.
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