Gold buildng on rate cut hopes, with an additional boost from a weaker dollar. Silver was steady after retreating from record highs.
Investors are awaiting key inflation data that may signal what the Federal Reserve will do at its upcoming policy meeting next week. The central bank is widely expected to cut interest rates for the third time in a row.
The Fed’s favorite inflation measure, the personal expenditures price index, is set for release Friday. The government shutdown in October and part of November delayed a lot of economic data, keeping policymakers largely blind when considering the state of the economy so the data that is available is being closely scrutinized.
The private payrolls report from ADP on Wednesday, provided the most recent picture on labor market conditions on Wednesday. It showed the largest monthly drop in more than two and a half years in November, with a surprise 32,000-job decline. The Fed has said it closely watches inflation and labor market data when setting monetary policy.
The monthly U.S. jobs report for November, which normally comes out the first Friday of the following month, isn’t coming out until Dec. 16 and will be combined with the October report. The September figures came out Nov. 20.
Investors are pricing in a 25 basis point cut at next week’s Fed meeting. More than 87% of the investors tracked by the CME FedWatch Tool are betting that the Fed will cut rates by 25 basis points Dec. 10, while the rest expect rates to stay unchanged. An additional rate cut would be considered bullish for precious metals, making them a more attractive alternate investment.
October’s interest rate reduction to 3.75% to 4.00% was the second 25-basis point reduction in a row. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts last year.
February gold futures rose 0.3% Thursday to settle at $4,243.00 an ounce on Comex, and the most-active contract lost 0.3% in the first four days of the week. Bullion gained 6.5% last month after increasing 3.2% in October and surging 10% in September, the most in six months. It’s up 61% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The February contract is currently up $20.40 (+0.48%) an ounce to $4263.30 and the DG spot price is $4242.90.
March silver futures decreased 1.9% Thursday to settle at $57.49 an ounce on Comex, though the most-active contract rallied 0.6% in the first four days of the week. Silver increased 19% in November after rising 3.3% in October and adding 15% in September. It’s almost doubled this year after rising 21% in 2024. The March contract is currently up $1.189 (+2.07%) an ounce to $58.680 and the DG spot price is $58.57.
Silver traders took profits Thursday after the white metal rose to an all-time high earlier in the week on a historic squeeze in the London market.
Spot palladium decreased 1.3% Thursday to $1,456.00 an ounce after gaining 0.3% in the first four days of the week. Palladium added 0.5% in November after rising 14% in October and gaining 14% in September. Palladium is up 57% this year after dropping 17% in 2024. Currently, the DG spot price is up $29.00 an ounce to $1478.00.
Spot platinum edged up 0.1% Thursday to $1,660.30 an ounce and up 0.2% so far this week. It climbed 4.7% in November after rising 1% in October and gaining 15% in September. Platinum is up 82% in 2025 after losing 8.4% in 2024. The DG spot price is currently up $2.70 an ounce to $1658.50.
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