Gold Prices Rise Again in Global Market: What’s Driving the Surge?

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News Desk: Gold prices have risen in the global market. On Monday (November 24), the price increased by one percent amid expectations that the Federal Reserve might lower interest rates.

According to a report by Reuters, at 1:43 PM local time, spot gold prices rose by 1.2 percent, reaching $4,111.86 per ounce. Meanwhile, U.S. gold futures for December increased by 0.4 percent, settling at $4,094.20 per ounce.

Bert Melek, Head of Commodity Strategy at TD Securities, said that confidence is growing in the market that the U.S. Federal Reserve is likely to reduce interest rates in December.

New York Fed President John Williams stated on Friday that U.S. interest rates could be lowered in the “near future,” but this would not compromise the Fed’s inflation target and would help prevent a downturn in the labor market.

On Monday, the CME FedWatch Tool reported a 79 percent probability of a rate cut in September.

Melek added, “We are waiting for the data, and it is expected that inflation may ease somewhat. Inflation is unlikely to remain very high. All these factors point toward an increase in gold prices.”

Rona O’Connell, an analyst at StoneX, noted that debates over a potential Fed rate cut, along with changes in the geopolitical situation, particularly related to Ukraine, could further support higher gold prices. However, she expects prices to remain within the $4,000 to $4,100 range for now.

The report also mentioned that spot silver rose by 1.7 percent to $50.84 per ounce, while platinum increased by 2.3 percent, reaching $1,545.91 per ounce.