Gold edges down Wednesday ahead of the Federal Reserve’s monetary policy decision, while silver climbed to new record highs above $60 an ounce.
The Fed is expected to cut interest rates for a third consecutive time Wednesday afternoon, though markets will likely pay more attention to policymakers’ views on the state of the economy, particularly given the lack of data this fall because of the U.S. government shutdown. Signals of further tightening are likely to continue to boost precious metals, making them more attractive assets for investment. Silver also gained on supply tightness and buying by exchange-traded funds.
February gold futures rose 0.4% Tuesday to settle at $4,236.20 an ounce on Comex, though the most-active contract was down 0.4% in the first two 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 60% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The February contract is currently down $11.20 (-0.26%) an ounce to $4225.00 and the DG spot price is $4197.30.
March silver futures surged 4.2% Tuesday to settle at $60.84 an ounce on Comex, and the most-active contract climbed 6.4% so far this week. The white metal hit record highs last week on a historic squeeze in the London market. Silver increased 19% in November after rising 3.3% in October and adding 15% in September. It’s more than doubled this year after rising 21% in 2024. The March contract is currently up $0.435 (+0.71%) an ounce to $61.275 and the DG spot price is $60.37.
Investors are also questioning whether the U.S. will impose tariffs on silver, Bloomberg reported.
In economic news, Kevin Hassett, whom speculators see as a possible presidential appointee to succeed Fed Chairman Jerome Powell, said Tuesday that he sees plenty of room to lower interest rates. Powell’s term is up in February. But most investors will be listening to Powell’s news conference Wednesday after the rate decision for further guidance.
Investors are pricing in a 25 basis point cut by the Fed on Wednesday. Almost 90% of the investors tracked by the CME FedWatch Tool are betting that the Fed will cut rates by 25 basis points, while the rest expect rates to stay unchanged.
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.
Spot palladium gained 3% Tuesday to $1,511.00 an ounce after advancing 4.1% in the first two days of the week. Palladium added 0.5% in November after rising 14% in October and gaining 14% in September. Palladium is up 63% this year after dropping 17% in 2024. Currently, the DG spot price is down $37.70 an ounce to $1475.00.
Spot platinum increased 2.9% Tuesday to $1,696.70 an ounce and is up 2.4% so far this week. It climbed 4.7% in November after rising 1% in October and gaining 15% in September. Platinum is up 86% in 2025 after losing 8.4% in 2024. The DG spot price is currently down $37.70 an ounce to $1652.80.
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