Gold prices rise amid growing expectations of US rate cuts

December 03, 2024 / 9:24 PM

Sharjah 24 – Reuters: Gold prices rose on Tuesday, driven by increasing expectations of a US interest rate cut this month, which pressured the dollar and Treasury yields. Market focus is now on upcoming economic data that could influence the Federal Reserve’s policy direction.

Spot gold gained 0.2%, reaching $2,644.79 per ounce by 11:32 GMT, after a 1% drop on Monday. US gold futures rose 0.3%, reaching $2,667.40.

Markets now see a 73% chance of the Federal Reserve reducing rates by 25 basis points at its December 17-18 meeting, up from 66% before Fed member Christopher Waller voiced support for the rate cut, citing expectations of inflation dropping to 2%.

Other precious metals also saw gains, with silver rising 1.39% to $30.93 per ounce, platinum increasing 0.7% to $953.68, and palladium jumping 0.9% to $990.27.