Closing the trading session on 28/11, global spot gold prices rose 62 USD to 4,217 USD an ounce. During the session, prices at one point surpassed 4,220 USD, reaching a two-week high.

The market surged due to expectations that the Federal Reserve (Fed) will cut interest rates next month. Gold becomes more attractive in a low-interest-rate environment. For the entire month, prices increased by 3,6%, marking the 4th consecutive monthly rise.

Global gold prices increased by over 60 USD during the 28/11 session. Chart: Kitco.

"The current forecast is that the US economy will grow slower in 2026, forcing the Fed to lower interest rates. This will draw more investors into the gold market", Bart Melek, director of commodity strategy at TD Securities, said.

Recent comments from Federal Reserve Board of Governors member Christopher Waller and Federal Reserve Bank of New York President John Williams indicated an easing stance. Macroeconomic data, released after the US government reopened, also showed weakness, further solidifying expectations for a Fed rate cut next month. Investors are now betting on an 87% probability of a rate cut in december, significantly higher than 50% last week.

In Asia, physical gold demand was subdued this week, as high prices slowed retail purchases, despite India's wedding season. Meanwhile, China removed a tax incentive policy for gold purchases, also causing demand to decline.

Other precious metals also saw gains this week. Silver prices on 28/11 set a new record, rising to 56,78 USD an ounce. For the entire month, silver increased by 16,6%. "Charts show silver has been on an upward trend all week, leading many technical analysis-driven investors to remain optimistic about this market", Jim Wyckoff, senior analyst at Kitco Metals, said.

Platinum is currently trading at 1,672 USD an ounce, up nearly 11% this week. Palladium increased by 5,6% this week, closing at 1,450 USD.

Ha Thu (according to Reuters)