Gold and Silver Surge on Fed Rate Cut Hopes by Amit Gupta, Kedia Advisory
Gold and silver prices rallied sharply, supported by growing expectations of a Federal Reserve interest rate cut in December. Gold rose 2% to $4,080 per ounce, while silver jumped 3% to $50 per ounce, both reaching multi-week highs. Weak US economic data, including a sharp fall in consumer sentiment and job losses in October, fueled speculation of monetary easing. The prolonged government shutdown—the longest in US history—added to economic uncertainty. Meanwhile, the US Senate narrowly passed the first stage of a bill to reopen parts of the government, offering cautious optimism for a resolution.
Key Highlights
* Gold climbed 2% to $4,080 per ounce, a two-week high.
* Silver surged 3% to $50 per ounce, the highest since October 20.
* Traders see a 70% chance of a Fed rate cut in December.
* US consumer sentiment plunged to its second-lowest level on record.
* The Senate advanced a bill to end the record-long shutdown.
Gold and silver prices extended their recent rally on Monday as mounting expectations of a Federal Reserve rate cut boosted investor sentiment. Gold climbed 2% to $4,080 per ounce, hovering near its highest level since October 24, while silver surged 3% to $50 per ounce, touching a fresh three-week high.
The gains came amid renewed hopes that the Federal Reserve may ease monetary policy in December following a string of weak US economic indicators. Traders are now pricing in nearly a 70% probability of a rate cut, as economic concerns deepen. Recent data showed US consumer sentiment plunged sharply in November, reaching its second-lowest reading on record. The survey reflected growing anxiety over the prolonged government shutdown, which has become the longest in American history.
Adding to the gloomy outlook, the US economy shed jobs in October, particularly in the government and retail sectors, while layoffs climbed to their highest level in two decades. These developments reinforced the belief that economic activity is slowing faster than anticipated, prompting investors to seek refuge in precious metals.
In Washington, the US Senate narrowly passed the first stage of a bill to reopen parts of the government, securing the necessary 60 votes. Eight Democratic senators crossed party lines to back the measure, which provides funding for several key departments, including Agriculture and Veterans Affairs.
Finally, precious metals rallied as investors bet on potential Fed easing amid weakening economic data and political uncertainty, keeping gold and silver near multi-week highs.
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