FX.co ★ Gold Set for Monthly Gain on US Rate-Cut Bets

Gold prices surged to approximately $4,190 per ounce on Friday, nearing a five-week peak and set for a fourth consecutive monthly increase. This upward trend is fueled by growing investor confidence in a Federal Reserve rate cut anticipated in December. Recent statements by Federal Reserve officials who are advocating for further monetary easing, coupled with delayed economic data indicating economic frailty, have bolstered these expectations. Furthermore, Kevin Hassett, regarded as a leading contender to succeed Jerome Powell, has mirrored President Trump’s endorsement of a rate reduction. Currently, the market anticipates more than an 80% likelihood of a 25 basis points cut next month, a significant rise from 30% just a week ago. In addition, investors are factoring in the possibility of three additional cuts by the close of 2026. This ascent positions gold for its most robust annual performance since 1979, driven by substantial purchasing by central banks and significant non-sovereign inflows into exchange-traded funds (ETFs).