Gold prices climbed for a fourth consecutive session as a weaker U.S. dollar and increasing expectations of a rate cut by the Federal Reserve boosted investor interest in the precious metal.
Spot gold rose about 0.4% to US$ 4,142.70 per ounce, while U.S. gold futures for December delivery gained around 0.8% to roughly US$ 4,149.20 per ounce.
Markets are now pricing in a roughly 68% probability of a 25-basis-point rate cut in December, up from ~64% earlier, as economic data and U.S. budget developments suggest easing may be on the horizon.
The weaker dollar further supports bullion’s appeal, given that gold yields no interest and becomes relatively more attractive when real interest rates fall.
In short, the gold market is benefitting from a combination of weakened currency, rising rate-cut expectations and risk-hedge demand, suggesting a favourable near-term price environment for the metal.
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