Gold Eyes Fourth Consecutive Monthly Gain Amid Fed Rate Cut Optimism
By Noel John
November 28, 2025
Gold prices remain on track for a fourth consecutive monthly rise, supported by growing investor optimism around a potential interest rate cut by the Federal Reserve in December. Despite a slight retreat on Friday as traders booked profits following a two-week high earlier in the session, the precious metal continues to benefit from expectations of easier U.S. monetary policy and a weakening dollar.
Gold Price Performance and Market Sentiment
Spot gold inched up 0.1% to $4,162.59 per ounce by 09:37 GMT after hitting its highest level since November 14 earlier in the day. The metal is poised to post a weekly gain of approximately 2.4% and a monthly increase approaching 3.9%. U.S. gold futures for December delivery were last quoted at $4,221.30 per ounce before a trading outage at CME Group temporarily halted electronic dealing in currency platforms, futures products across commodities, Treasuries, and equities.
“The temptation to take profits following such impressive gains is natural,” noted Ross Norman, an independent analyst. “However, the underlying positive sentiment remains intact.” He cited ongoing concerns about mounting global debt, trade tariffs, and sanctions, all factors that support the safe-haven appeal of gold. Additionally, central bank purchasing activity has sustained bullion’s rally this year.
Federal Reserve Rate Cut Speculation
Gold, which does not yield interest, generally benefits when real interest rates fall or are expected to decline. Traders currently place an 85% probability on a Federal Reserve interest rate reduction at the upcoming December meeting, a notable increase from around 50% just a week ago. Comments from influential policymakers, including Fed Governor Christopher Waller and New York Federal Reserve President John Williams, have strengthened expectations of a policy easing. Furthermore, softer-than-anticipated U.S. economic data released after a government shutdown added fuel to the views that the Fed may lower rates to support growth.
Currency Market Impact
The U.S. dollar has weakened, heading toward its worst weekly performance since late July. A depreciating dollar tends to bolster gold by making the metal relatively cheaper for holders of other currencies, enhancing its demand.
Outlook for Other Precious Metals
Other metals also recorded gains this week. Spot silver rose 0.4% to $53.65 per ounce, with a weekly advance of 7.2%. UBS raised its silver price forecast by $5 to $8 per ounce, projecting an average price of $60 per ounce in 2026. Platinum climbed 2.2% to $1,643.60, up 8.8% on the week, while palladium gained 1% to $1,452.27, marking a 5.8% weekly increase.
Market Disruptions
A technical outage at CME Group briefly halted trading for foreign exchange platforms and futures contracts related to commodities, Treasuries, and stocks on Friday, temporarily impacting market liquidity.
Conclusion
The backdrop of softer U.S. economic indicators and signals from Federal Reserve officials has shifted trader expectations firmly toward a rate cut next month, reinforcing gold’s allure as a hedge against economic uncertainty and currency fluctuations. This dynamic is expected to continue underpinning precious metals markets as investors balance profit-taking with a positive medium-term outlook.
Reporting by Noel John and Ishaan Arora in Bengaluru; editing by Philippa Fletcher
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