Gold prices climbed in Asian trading on November 25, supported by a softer US dollar and expectations that the Federal Reserve may deliver another interest-rate cut before the end of 2026. The gold ended around $4,165 an ounce, (1 ounce is approx. 28.3 gms), extending its recent stability above the key $4000 level.
The US dollar slipped for the second consecutive session, making gold more affordable for international buyers.
- Market sentiment strengthened after delayed US economic data pointed to cooling consumer activity and declining confidence—signals that bolster the case for monetary easing.
- In a lookback, the September retail sales showed only a marginal uptick, indicating that months of strong household spending may be losing momentum.
- Meanwhile, consumer sentiment posted its sharpest drop since April 2025.
Adding to expectations of lower borrowing costs, Kevin Hassett, the White House National Economic Council Director and considered a leading candidate for the next Fed chair, is viewed as someone who aligns with President Donald Trump’s preference for rate cuts. Lower interest rates typically support gold prices because the metal does not pay interest, making it more attractive in relation to the yield-bearing assets. Swaps markets are now pricing in an 80% probability of a quarter-point rate cut in December.
Without any strong economic data to anchor the growing expectations, market optimism remains weak, as reflected in recent volatility across equities and cryptocurrencies.
Despite a slight pullback from last month’s record peak above $4,380 an ounce, gold has maintained firm support above $4,000.
- The metal remains on track for its strongest annual performance since 1979, rising more than 55% in 2024.
- Analysts attribute this increase in price, all courtesy the aggressive central bank buying and retail demand, driven by investors turning away from sovereign debt and currency markets amid persistent inflation and geopolitical uncertainty.
- The spot gold rose 0.8% to $4,164.30 an ounce. The Bloomberg Dollar Spot Index edged down 0.2% after a 0.3% decline on November 25. Silver as a metal advanced 0.9%, while platinum and palladium posted minor losses.
Gold’s upward trend received additional support after Federal Reserve Governor Christopher Waller signaled openness to a December rate cut. With official data delayed by the recent US government shutdown, investors are relying on lagging indicators to gauge the health of the economy. Traders currently assign a nearly 80% chance of a rate reduction at the Fed’s December 9–10 policy meeting, although policymakers remain split following cuts delivered in September and October.
This week, markets will turn their attention to several overdue economic reports, including September retail sales and producer-price data. Jobless claims for the November survey week will also draw heightened scrutiny as the Fed leans on alternative metrics in the absence of timely payroll figures.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
