Gold prices climbed to a peak for more than two weeks, surpassing the 4,230 USD/ounce mark in the session of November 30, amid weakening the USD and expectations of the US Federal Reserve (Fed) to soon cut interest rates more and more clearly.
According to data from Bloomberg and Investing.com, the spot gold price this morning fluctuated around 4,230 USD/ounce, up 0.7% compared to the previous session. During the day, gold fluctuated in the 4,157 - 4,231 USD/ounce range, recording a four-week consecutive increase streak - the strongest recovery since the beginning of the fourth quarter.
Reuters said the USD continued to weaken, as the DXY index fell to around 99.6 points, the lowest since July. Global investors bet the Fed will start a rate cut cycle in December, after a series of data showed US inflation cooling down and the job market slowing down.
The slowdown of the greenback has made gold, which is priced in USD, cheaper for other foreign currency holders. At the same time, falling US government bond yields increase the attractiveness of gold - an asset that does not yield interest but is considered a "storm shelter" in the context of many unstable global economies.
The latest report from Deutsche Bank released last weekend said that gold could reach $4,450/ounce in 2026, if demand for buying from central banks and ETFs remains strong. Some international experts predict that if the Fed cuts interest rates next month, gold could challenge the 4,300 - 4,400 USD/ounce range in the short term.
Experts from Reuters and Investing.com said that gold prices may maintain their upward momentum in early December, as expectations of the Fed cutting interest rates still cover the global financial market. However, the volatility is expected to increase sharply in the second half of the week, when the US announced the November employment report ( Nonfarm Payrolls) - a factor that could reverse interest rate expectations.
If US labor data is weaker than expected, gold could rebound to the 4,280 - 4,320 USD/ounce range. Conversely, if the job market shows strength, the US dollar could recover and push gold back below $4,200/ounce.
However, analysts from Bloomberg Intelligence believe that the medium-term trend of gold is still positive, as global monetary policy moves to an loose period and safe-haven capital flows increase sharply at the end of the year.
