{"id":100072,"date":"2025-12-03T09:15:16","date_gmt":"2025-12-03T14:15:16","guid":{"rendered":"https:\/\/www.businessupturn.com\/usa\/?p=100072"},"modified":"2025-12-03T09:15:16","modified_gmt":"2025-12-03T14:15:16","slug":"gold-rises-as-dollar-softens-ahead-of-fed-meeting","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/gold-rises-as-dollar-softens-ahead-of-fed-meeting\/100072\/","title":{"rendered":"Gold Rises as Dollar softens ahead of Fed meeting"},"content":{"rendered":"
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Gold prices edged higher on Wednesday, supported by a weakening dollar and growing expectations that the Federal Reserve will deliver an interest rate cut at next week\u2019s policy meeting. The move kept the precious metal near multi-week highs as traders leaned into a more dovish U.S. monetary outlook.<\/p>\n

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Gold climbs as markets bet heavily on a rate cut<\/strong><\/h2>\n

By 08:40 ET (13:40 GMT), spot gold was up 0.4% at $4,221.17 per ounce, while U.S. gold futures gained 0.8% to $4,252.90. Earlier this week, the metal touched a six-week peak of $4,264.29, extending its strong year-end momentum.<\/p>\n

With CME\u2019s FedWatch tool showing a roughly 90% chance of a December 9\u201310 rate cut, investors accelerated flows into safe-haven assets. A softening dollar, now trading near its weakest point since mid-November, further boosted gold by making it more affordable for international buyers.<\/p>\n

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Economic softness nudges Fed toward easing<\/strong><\/h2>\n

Recent U.S. data has pointed to cooling inflation and slower demand, strengthening the argument for policy easing. Traders are now awaiting Friday\u2019s delayed September PCE inflation report, the Fed\u2019s preferred gauge, for confirmation. Any dovish surprise could push gold even higher heading into the meeting.<\/p>\n

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Speculation grows over possible Fed leadership change<\/strong><\/h2>\n

Adding another layer to the market narrative, reports suggest that Kevin Hassett, a White House economic adviser who has publicly favored lower rates, is emerging as a leading candidate to replace Jerome Powell.<\/p>\n

Such a leadership shift would signal a more accommodative stance in 2025, feeding bullish sentiment for gold, which tends to thrive when borrowing costs fall and real yields compress.<\/p>\n

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Central banks lift global demand with the strongest buying in nearly a year<\/strong><\/h2>\n

Fresh data from the World Gold Council revealed that central banks added a net 53 tonnes to reserves in October, a 36% jump from September and the largest monthly addition since November 2024.<\/p>\n

Poland led October buying with 16 tonnes, lifting its annual total to 83 tonnes and pushing its holdings to 531 tonnes, or 26% of its reserve base. Brazil matched Poland\u2019s October purchase, adding 16 tonnes for the second month in a row.<\/p>\n

China also continued steady accumulation, marking its 12th straight month of additions, though at a modest 0.9 tonnes. Russia was the lone seller, trimming 3 tonnes in October.<\/p>\n

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Industrial metals mixed as traders await clarity<\/strong><\/h2>\n

The broader metals complex traded in narrow ranges while markets awaited the Fed. Silver futures rose 1.1% to $59.345 per ounce, sitting just below their record high of $59.65. Platinum futures dipped 1.7% to $1,655.<\/p>\n

Copper prices strengthened, mirroring improved risk appetite. London Metal Exchange copper climbed 2.3% to $11,445 per ton, while U.S. copper futures gained 2.8% to $5.3890 per pound.<\/p>\n

Gold enters the week with solid footing, backed by a softer dollar, heavy central bank buying, and strong expectations of a policy shift. For now, all eyes remain on Friday\u2019s PCE print and the Fed\u2019s decision, both of which could shape the next major leg of the rally.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

Gold prices edged higher on Wednesday, supported by a weakening dollar and growing expectations that the Federal Reserve will deliver\u2026<\/p>\n","protected":false},"author":294,"featured_media":100073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[1082,12475],"class_list":["post-100072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-markets","tag-dollar","tag-gold"],"reading_time":"3 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/100072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/294"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=100072"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/100072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/100073"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=100072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=100072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=100072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}