ALBAWABA- Gold prices surged 2% on Monday to their highest level in two weeks, driven by mounting expectations of a Federal Reserve rate cut next month and renewed safe-haven demand amid global economic and geopolitical uncertainty. A softer U.S. dollar further bolstered bullion’s appeal.
According to Reuters, spot gold climbed 2% to $4,078.45 per ounce by 09:56 GMT—its strongest level since October 27—while U.S. gold futures for December delivery rose 1.9% to $4,087.10 per ounce, according to Reuters data.
“There are growing concerns about the U.S. economy following weak data, and the main focus remains on the dollar index,” said Jigar Trivedi, senior research analyst at Reliance Securities. He added that safe-haven buying has increased as investors weigh persistent trade tensions and geopolitical risks.
Recent data showed the U.S. economy shed jobs in October, with notable declines in government and retail employment. Meanwhile, consumer sentiment fell to its lowest level in nearly three and a half years in early November, reflecting widespread anxiety over the prolonged 40-day federal government shutdown.
The U.S. Senate on Sunday advanced a bill to reopen government operations, though White House economic adviser Kevin Hassett warned that fourth-quarter growth could turn negative if the impasse continues.
Traders now see a 65% probability of a Fed rate cut in December, according to futures data. Gold, which offers no yield, tends to benefit from lower interest rates and heightened economic uncertainty.
In a market outlook, Saxo Bank said it expects gold to potentially approach $5,000 per ounce within the next 12 months and silver to reach $65, though it cautioned against expecting an immediate return to record highs.
