Gold price increases to six-week high as investors eye potential US rate cut

Gold prices climbed to their highest level in six weeks on Monday, supported by a weaker dollar and growing investor caution, while silver reached a record peak.

Spot gold rose 0.2 percent to $4,240.54 per ounce, briefly touching its highest since October 21. US gold futures for December delivery gained 0.5 percent to $4,276.00. The dollar weakened to a two-week low, making gold cheaper for holders of other currencies.

“There is a clear risk-off mood in the markets today. S&P futures are down, and major cryptocurrencies have fallen, creating a positive feedback loop into gold as a safe-haven asset,” said Kelvin Wong, senior market analyst at OANDA.

US stock futures fell in early Asian trade, while cryptocurrencies also faced sharp losses. Bitcoin dropped 3.6 percent to $87,881.82, and ether fell 5 percent to $2,871.59.

Market expectations of a US rate cut later this month have further supported precious metals. Recent dovish comments from Federal Reserve Governor Christopher Waller and New York Fed President John Williams, alongside softer US economic data, have strengthened the view that the Fed may ease policy in December. Futures indicate an 87 percent probability of a rate reduction, according to CME’s FedWatch tool.

White House economic adviser Kevin Hassett, a potential Fed Chair candidate, also expressed support for lower interest rates, aligning with President Donald Trump’s stance. Investors now look to the release of core US Personal Consumption Expenditures figures on Friday for further guidance.

Lower borrowing costs generally favour non-yielding assets such as gold. Silver has also surged, partly due to thin market liquidity following a recent CME outage rather than fundamental factors, Wong noted.

Other precious metals saw gains as well. Platinum rose 1.3 percent to $1,694.70 per ounce, while palladium gained 2.1 percent to $1,482.45.

Gold and silver prices rise in Pakistan

Local gold prices mirrored global gains on Saturday, with the per-tola rate climbing to Rs444,162, an increase of Rs5,300 in a single day. Ten-gram gold was sold at Rs380,797 after a Rs4,544 increase, according to the All-Pakistan Gems and Jewellers Sarafa Association.

Silver also saw a jump, rising Rs267 to Rs5,909 per tola. The international gold rate advanced by $53 to $4,218 per ounce, plus a $20 premium.