Gold Prices Surge on Bargain Hunting and Fed Rate Cut

Gold Prices Climb Amid US Rate Cut and Bargain Hunting, Poised for Monthly Gains

Gold prices moved up on Friday. This move marks three months in a row of gains. Bargain hunting and a rate cut by the US Federal Reserve drove prices. Investors watched economic signs. They weighed a trade deal with China.

On Friday, spot gold rose 0.3% to reach US$4,034 per ounce. This price reflects a 4.5% rise in a month. US gold futures for December fell by 1.1% and ended near US$3,955 per ounce. The Fed cut rates by 0.25 percentage points on Wednesday. The cut brought the range down to between 3.75% and 4.00%. Lower rates make gold, a non-yielding asset, more appealing when times are uncertain.

The rate cut sparked a cautious mood among traders. Fed Chair Powell signaled few more cuts. Data from CME Group shows a 74.8% chance of a 25-basis-point cut in December. This chance dropped from 91.1% a week earlier.

The US dollar index stayed close to a three-month high. A high index makes gold cost more for those with other currencies.

President Trump and President Xi agreed on a deal on tariffs. The deal lowers tariffs on Chinese goods. It calls for China to curb the illegal fentanyl trade, buy US soybeans, and send rare earth metals. These moves shift global economic signals that can affect gold.

Global gold demand rose by 3% over the third quarter. Demand hit 1,313 metric tonnes—the best third quarter on record, per the World Gold Council. The rise rests on more investments. The SPDR Gold Trust, the largest ETF backed by gold, saw its holdings climb from 1,036.05 tonnes to 1,040.35 tonnes.

In related metals markets, silver stayed near US$48.92 per ounce. Platinum inched up by 0.2% to trade at US$1,613.50. Palladium jumped 2.1% to reach US$1,474.52 per ounce.

US monetary decisions and global moves push gold and other metals along a set path. Investors look for steady ground and a mix of assets in uncertain times.

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This article was generated by Hivebox AI in collaboration with AuCan Gold.

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