Gold rallies to a six-week high early Monday and silver climbed to a record high as the dollar fell and the metals attracted haven investors.
The markets remained focused on the Federal Reserve and speculation about its next stops on monetary policy. Most investors are expecting the third rate cut in a row next week. A rate cut would be considered bullish for gold, making it a more attractive alternate investment. Declines in the dollar are also supportive for gold, making it a cheaper buy for holders of other currencies.
February gold futures rose 3.4% last week to settle at $4,254.90 an ounce on Comex, and the most-active contract gained 1.3% Friday. U.S. financial markets were closed Thursday for the Thanksgiving holiday. 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 $18.60 (+0.44%) an ounce to $4273.50 and the DG spot price is $4242.90.
Investors will be closely watching multiple appearances by Fed Chair Jerome Powell for further direction, including a speech Monday evening.
President Donald Trump also said Sunday that he has chosen Powell’s successor, though he didn’t name the person. Powell’s term as Fed chair ends in 2026. Speculation has surrounded Kevin Hassett, Trump’s chief economic adviser and a proponent of lower interest rates. The term begins in February.
The Fed’s favorite inflation measure, the personal expenditures price index, is expected to be released Friday and may influence the following week’s monetary policy decision by Fed officials. 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.
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. 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.
March silver futures increased 13% last week to settle at $57.16 an ounce on Comex after rallying 6.6% Friday. Silver increased 19% in November after rising 3.3% in October and adding 15% in September. It’s up 95% this year after rising 21% in 2024. The March contract is currently up $0.887 (+1.55%) an ounce to $58.050 and the DG spot price is $57.78.
Spot palladium increased 4.6% last week to $1,451.00 an ounce after gaining 1.4% Friday. Palladium added 0.5% in November after rising 14% in October and gaining 14% in September. Palladium is up 56% this year after dropping 17% in 2024. Currently, the DG spot price is up $10.70 an ounce to $1482.00.
Spot platinum advanced 8.7% last week to $1,656.70 an ounce after rising 4.6% Friday. It climbed 4.7% in November after rising 1% in October and gaining 15% in September. Platinum is up 81% in 2025 after losing 8.4% in 2024. The DG spot price is currently up $17.40 an ounce to $1696.60.
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