Gold prices rose more than 2% to a two-week high on Monday (November 10), as weak U.S. economic data strengthened expectations that the Federal Reserve (Fed) will cut interest rates, boosting demand for the non-yielding asset.
At the close of trading on November 10, spot gold gained 2.3% to $4,090.96 per ounce, after hitting its highest level since October 27 earlier in the session. Gold futures added 2.2% to $4,099.20 per ounce.
Data released last week showed that the U.S. economy lost jobs in October 2025, with declines seen in the government and retail sectors. In addition, data on November 7 revealed that consumer sentiment fell sharply in early November 2025, as households grew increasingly worried about an economic recession.
According to the CME FedWatch Tool, markets are now pricing in a 67% chance that the Fed will cut interest rates in December 2025, with the probability expected to rise to around 80% by January 2026.
Gold, which does not yield interest, tends to perform well in low-rate environments and during times of economic uncertainty.
Meanwhile, on November 9, the U.S. Senate passed a measure to reopen the federal government, ending a 40-day shutdown.
The reopening of the U.S. government will restore data flows and revive expectations of a rate cut in December 2025, but more importantly, it will shift market attention back to the worsening U.S. fiscal outlook.
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