Gold Price Prediction: Gold rate makes fourth consecutive monthly gain. Will it rise in December?
Spot gold rose 1.3 percent to $4,210.49 per ounce at 12:10 a.m. ET; This was its highest price since November 14 and was expected to rise 3.4 percent for the week. Bullion is on track to gain 5% this month and is poised for its fourth consecutive monthly gain. Silver climbed to a new record level of $56.41 per ounce, with an increase of 5.3% in the session and 15.2% in the month.
Futures trading resumed around 8:30 a.m. after an hour-long outage at CME Group halted trading on the foreign exchange platform and futures covering currencies, commodities, Treasuries and stocks. U.S. gold futures for February delivery rose 1% to $4,245.70 an ounce.
“The expectation is that we will continue to have a slower economy in 2026 and the Federal Reserve will likely cut interest rates, which is driving some investors back into gold,” said Bart Melek, head of global commodity strategy at TD Securities.
Gold tends to perform well in low interest rate environments. Recent dovish statements from Fed Governor Christopher Waller and New York Fed President John Williams, combined with softer economic data following the recent U.S. government shutdown, have strengthened expectations that the central bank will cut interest rates next month.
Traders see the probability of a rate cut in December at 87%, up from 50% last week. Meanwhile, Jim Wyckoff, senior analyst at Kitco Metals, said “technical charts for silver have turned even more bullish over the past week, inviting chart-based speculators to the long side of the silver market.” Gold demand remained weak in major Asian markets this week as high prices hindered retail buying despite the start of the wedding season in India. The removal of tax exemption on gold purchases in China reduced consumer appetite. Platinum rose 10% on the week to $1,659.02, up 3.2%, while palladium rose 1.3% to $1,456.68 and is poised for a 6% weekly gain.
