Gold ticked back up but still heading for a weekly drop as uncertainty over whether the Federal Reserve would cut interest rates again in December boosted the dollar.
The precious metal was still on track for its third consecutive monthly rise in a month that saw it hit a series of new records. Fed Chairman Jerome Powell raised doubts about whether the Fed would cut again in December in his remarks following the interest rate reduction to 3.75% to 4.00% announced Wednesday.
“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December,” Powell said during his post-meeting news conference. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it.”
Gold lost some of its luster as a hedge against uncertainty after the summit between U.S. President Donald Trump and Chinese President Xi Jinping this week softened trade tensions between the two countries. But the U.S. government shutdown, now in its 31st day, is adding to uncertainty.
December gold futures rose 0.4% Thursday to settle at $4,015.90 an ounce on Comex, though the front-month contract lost 3% in the first four days of the week. Bullion is up 3.7% this month after surging 10% in September, the most in six months, and adding 5% in August. It’s up 52% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The December contract is currently up $14.20 (+0.35%) an ounce to $4030.10 and the DG spot price is $4018.00.
About two-thirds of the investors tracked by the CME FedWatch Tool are betting that the Fed will reduce rates by another 25 basis points in December, compared with almost 92% a week ago. The cut this week 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.
Trump said he would cut tariffs on China after meeting with Xi Thursday at the APEC summit in South Korea. He said Beijing had agreed to allow the export of rare earth elements and start buying American soybeans.
Front-month silver futures rose 1.5% Thursday to settle at $48.62 an ounce on Comex, though the December contract was little changed for the week. Silver is up 4.2% this month after rising 15% in September, the biggest monthly rally in two and a half years, and climbing 11% in August. It rose 21% in 2024. The December contract is currently down $0.221 (-0.45%) an ounce to $48.395 and the DG spot price is $48.85.
Spot palladium gained 2.1% Thursday to $1,455.50 an ounce and is up 50 cents so far this week. Palladium is up 15% this month after rising 14% in September and declining 7.8% in August. Palladium dropped 17% last year. Currently, the DG spot price is up $1.30 an ounce to $1463.00
Spot platinum increased 1% Thursday to $1,614.50 an ounce but is down 0.2% so far this week. It’s up 3% this month after gaining 15% in September and rising 5.9% in August. Platinum lost 8.4% in 2024. The DG spot price is currently down $27.30 an ounce to $1593.00.
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