Gold hits six-week high as silver surges to new record
Gold hits a six-week high and silver sets new record as expectations of US rate cuts rise, and dollar weakens ahead of key economic data.
- Gold climbed to its highest level in six weeks, supported by a weakening US dollar and growing expectations of interest rate cuts.
- Silver surged to a new all-time record high, briefly touching US$58.83, and has more than doubled in price since the start of the year.
- The price increases are driven by market sentiment that the US Federal Reserve will lower borrowing costs, which boosts the appeal of non-yielding assets like gold and silver.
- Traders are closely watching upcoming US economic data and comments from Fed officials for further clues on monetary policy direction.
Gold climbed to its highest level in six weeks on Monday (December 1, 2025), lifted by mounting expectations of US interest rate cuts and a weaker dollar, while silver surged to a new record ahead of a series of key US economic releases.
Spot gold rose 0.3% to US$4,241.27 per ounce at 1.44pm ET (18.44 GMT), its strongest level since 21 October.
February gold futures in the United States finished 0.5% higher at US$4,274.80.
Silver jumped 3.8% to US$58.57 after briefly touching a historic peak of US$58.83. The metal has more than doubled in price since the start of the year.
The US dollar slid to a two-week low, enhancing demand for gold among buyers using other currencies.
David Meger, director of metals trading at High Ridge Futures, said expectations of further rate reductions and inflation remaining above the Federal Reserve’s target were continuing to underpin both gold and silver.
Traders have now priced in an 87% chance of a December rate cut, helped by softer US data and dovish commentary from Federal Reserve officials, including Governor Christopher Waller and New York Fed President John Williams.
Lower borrowing costs generally support non-yielding assets such as gold.
Markets are also awaiting several important US indicators this week: the November Automatic Data Processing (ADP) employment report on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation measure, due on Friday.
Comments from Fed Chair Jerome Powell, expected later on Monday, may also offer clarity on the policy outlook.
Meger added that the prospect of a more dovish successor to Powell was lending additional support to precious metals. White House economic adviser Kevin Hassett said on Sunday he would be willing to take the role if appointed, while Treasury Secretary Scott Bessent suggested a new Fed chair could be chosen before Christmas.
Elsewhere in the precious-metals market, platinum slipped 0.7% to US$1,660.69, and palladium dropped 2.1% to US$1,431.52.
Reuters
