Gold Prices Approach Five-Week High as Rate-Cut Bets Strengthen

Gold climbed to around $4,190 per ounce on Friday, nearing a five-week high and heading for a fourth straight monthly gain, as confidence grew around a December Federal Reserve rate cut.

Supportive comments from multiple Fed officials, combined with delayed economic data pointing to economic softness, have strengthened expectations for monetary easing. Adding to this momentum, Kevin Hassett—considered a leading contender to succeed Jerome Powell—has publicly aligned with President Trump’s call for a rate reduction.

Markets are now pricing in over an 80% chance of a 25 bps cut in December, a sharp jump from roughly 30% just a week earlier. Traders also expect three additional cuts by the end of 2026.

Gold is on track for its best annual performance since 1979, bolstered by heavy central-bank purchases and continued ETF inflows from non-sovereign investors.