Global gold prices steady as traders raise bets on Fed rate cut next month

Global gold prices held steady on Friday after falling more than 1%, as traders increased their bets that the US Federal Reserve will cut interest rates in December, following dovish policy signals from the central bank.

Reuters reported that on Friday, November 21, 2025, gold prices steadied after an early-session decline of more than 1%, driven by rising expectations of a US rate cut after the Federal Reserve outlined a more accommodative monetary stance.

Spot gold was flat at US$4,086.57 per ounce at 13:48 ET (18:48 GMT), after dropping sharply earlier in the session. Bullion is expected to post a 0.1% weekly gain.

US December gold futures settled 0.5% higher at US$4,079.50 per ounce.

New York Fed President John Williams said on Friday that the Federal Reserve could reduce rates “in the near term” without jeopardising its inflation goal.

Jim Wyckoff, senior analyst at Kitco Metals, said the comments were “definitely supportive”, adding that they encouraged buying during the morning session.

Traders now see a 74% chance of a December rate cut, compared with 40% previously.

A delayed labour report showed a mixed picture of the US job market:

• Non-farm payrolls rose 119,000 in October, beating expectations of 50,000
• Unemployment reached its highest level in four years
• Gold, a non-yielding asset, typically performs well in lower interest-rate environments.

Meanwhile, other Fed officials maintained a more hawkish tone. Lorie Logan, president of the Dallas Fed, urged keeping policy rates unchanged “for a while”.

Wyckoff added that a strong rebound in US equities could pressure gold, as rising risk appetite tends to pull investment away from safe-haven assets.

Major Wall Street indices climbed on Friday, as traders strengthened expectations of a December rate cut following policymakers’ statements.

At the same time, physical gold demand in key Asian markets remained weak this week, with interest-rate volatility weighing on buying sentiment.

Other precious metals

• Silver fell 0.4% to US$50.39/oz
• Platinum edged up 0.1% to US$1,512.67/oz
• Palladium rose 0.2% to US$1,380/oz