Gold Prices Rise on Expectations of Fed Rate Cuts; Silver Hits New Record High
Gold prices climbed last night amid growing expectations that FED will cut interest rates, while silver surged to a new all-time high of $59.32 per ounce
Reuters reported that gold prices increased on Friday (Dec 5, 2025) as anticipation strengthened that the Fed will cut interest rates at its meeting next week, boosting overall investment sentiment. Analysts expect gold to trade between $4,500–$5,000 next year. Meanwhile, silver prices soared to record levels.
Spot gold rose 1% to $4,212.16 per ounce at 1:36 p.m. New York time (18:36 GMT), although it remains on track to finish the week down 0.4% overall.
U.S. gold futures for February delivery settled unchanged at $4,243 per ounce.
“The market is increasingly confident that the Fed will cut rates, and because of that, we’re seeing some softness in the U.S. dollar, which is supportive of gold,” said Bart Melek, Head of Global Commodity Strategy at TD Securities.
U.S. economic data showed that the core Personal Consumption Expenditures (Core PCE) price index rose 0.3% in September from the previous month, while the annual increase slowed to 2.8% from 2.9% in August.
Earlier data also revealed the steepest drop in private-sector employment in more than two and a half years last month.
Dovish comments from several Fed officials further reinforced expectations of monetary easing.
The CME FedWatch tool indicates that markets assign an 87.2% probability of a 0.25% rate cut at the Fed’s meeting on Dec 9–10.
Alex Ebkarian, COO of Allegiance Gold, said gold is expected to trade within $4,200–$4,500 this year, and $4,500–$5,000 next year, depending on Fed decisions.
Meanwhile, physical gold demand in India and China slowed this week, as buyers waited for spot prices to correct.
Silver prices surged 2.6% to $58.59 per ounce, up 4% for the week, after earlier hitting a historic high of $59.32.
“Silver is following gold, and many investors still see silver as relatively cheap compared to gold,” Melek added, noting structural shortages and rising demand from electrification trends as key drivers.
The white metal has jumped 98% since the beginning of the year, supported by supply shortages and its inclusion on the U.S. critical minerals list.
Platinum held steady at $1,646.10, while palladium rose 0.3% to $1,453.39.
