Gold prices edged up to a near three-week high on Tuesday as rising expectations of a Federal Reserve interest-rate cut in December and easing U.S. fiscal uncertainty boosted safe-haven demand.
Spot gold was trading at about US$ 4,131.83 per ounce, while U.S. futures for December delivery rose to around US$ 4,138.70 per ounce — both levels not seen since October 24. The shift reflects growing investor conviction that softer economic data — including job losses and weak consumer sentiment — will prompt the Fed to ease policy.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making them relatively more attractive. Additionally, progress toward ending the U.S. government shutdown has reduced fiscal uncertainty while keeping growth concerns intact, further supporting bullion.
Looking ahead, analysts suggest gold could test higher levels if dovish signals from the Fed strengthen and the U.S. dollar remains under pressure.
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