Spot gold increased strongly, closing the week at 4,218.4 USD/ounce. Compared to the closing price of the previous trading session, world gold prices increased by about 3.8%, marking the fourth consecutive month of increase.
Silver rose to a new record of 56.78 USD/ounce, up 6.1% in the session and 16.6% in the month.
futures trading resumed at around 8:30 a.m. EST, after an hours-long disruption at CME Group (CME.O), causing trading activities on the currency platform and futures contracts related to foreign exchange, commodities, bonds and securities to be suspended.
February gold futures in the US closed the session up 1.3% to $4,254.9/ounce.
It is expected that the economy will continue to grow slowly as we enter 2026, and the US Federal Reserve (Fed) is likely to cut interest rates - which is pulling some investors back to gold, said Bart Melek, global commodity strategist at TD Securities.
Gold is often moving positively in a low interest rate environment.
Recent dovish statements from Fed Governor Christopher Waller and New York Fed President John Williams, along with weaker economic data following the recent US government shutdown, have reinforced expectations of a Fed rate cut next month.
Traders now see an 87% chance of a rate cut in December, compared to 50% last week.
Meanwhile, the technical charts of silver have become more positive over the past week, and thats attracting speculators according to the chart analysis to participate in buying positions, according to Jim Wyckoff, senior analyst at Kitco Metals.
Demand for gold in major Asian markets this week is quite quiet, due to high prices, which have weakened retail sales despite the start of the wedding season in India. In China, canceling tax exemptions for gold purchases also reduces consumer purchasing power.
platinum prices rose 4% to $1,672.5 for the week, up 10.7%; while palladium rose 0.8% to $1,450.16 and was on track for a 5.6% increase for the week.
The world gold market operates through two main valuation mechanisms. The first is the spot delivery market, where prices are quoted for transactions and spot deliveries.
Second is the futures contract market, which sets prices for future deliveries. Due to year-end book-taking activities, December gold contracts are currently the most actively traded on CME.
