Global gold prices rise as markets expect steeper Fed rate cuts and weaker dollar

Global gold prices climbed overnight, supported by growing expectations that the US Federal Reserve will cut interest rates next month, alongside a weakening US dollar.

Reuters reported on Monday (November 24,  2025) that gold gained as markets increasingly priced in a December rate cut by the Federal Reserve, while the softer dollar made gold cheaper for holders of other currencies.

Spot gold rose 1.2% to US$4,113.59 per ounce at 13:51 ET (18:51 GMT), while US gold futures for December delivery increased 0.9% to US$4,115.40 per ounce.

The US dollar index edged lower, making dollar-priced gold more affordable for foreign buyers.

Bart Melek, head of commodity strategy at TD Securities, said:

“The market is becoming more confident that the Fed is preparing to cut rates in December.”

“Lower interest-rate expectations and a weaker dollar are helping to support gold in this environment.”

John Williams, President of the New York Fed, said on Friday that US interest rates may be cut “in the near term” without undermining the Fed’s inflation target, while also helping to prevent a slowdown in the labour market.

According to the CME FedWatch tool, the probability of a Fed rate cut next month stands at 79%.

Gold expected to fluctuate between US$4,000–4,100 per ounce

Gold, which does not yield interest, tends to benefit in a low-rate environment and during periods of geopolitical uncertainty.

Investors are now watching for key US economic data delayed by the recent government shutdown, including retail sales, jobless claims and the producer price index, all due later this week.

Meanwhile, the United States and Ukraine continued talks on Monday to finalise a proposal aimed at ending the Russia–Ukraine war after both sides agreed to revise elements of the US plan, which some viewed as overly favourable to Moscow.

Rhona O’Connell, an analyst at StoneX, wrote in a note:

“With the Fed debate intensifying and geopolitical volatility — especially regarding Ukraine — gold still has scope for buying interest, but in our view prices will remain range-bound between US$4,000 and US$4,100.”

Other precious metals

Spot silver rose 0.8% to US$50.41 per ounce, platinum gained 2.1% to US$1,542.75, and palladium increased 1.3% to US$1,392.36.