Gold Soars Past Four-Month Peak As Fed Cut Expectations Grow - Arabian Post

(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

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Gold surged past levels not seen in over four months after growing confidence that the Federal Reserve will cut interest rates this month boosted demand for bullion, while silver climbed above $40 per ounce for the first time in over a decade.

Spot gold rose around 0.9% to roughly US$3,486.86 per ounce, reaching highs last marked in late April. US gold futures for December delivery also advanced, riding momentum from dovish comments by San Francisco Fed President Mary Daly and a U. S. appeals court decision that struck down most of former President Trump's tariffs, which weighed on the dollar. Silver jumped about 2.2%, to near US$40.56, its best since September 2011. Other precious metals followed: platinum added 1.5% and palladium rose around 0.8%.

Investors have been digesting a weakening US dollar, cautious labour market indicators, and signals from policymakers suggesting the Fed could lower rates by 25 basis points. Some traders contemplate a larger cut, although forecasts remain varied. Demand for gold as a hedge has been reinforced by geopolitical uncertainty and concerns around the independence of central banking.

Analysts at ANZ and UBS have revised their forecasts for gold upward. ANZ now expects gold to average about US$3,800 per ounce by year-end, with upside toward US$4,000 by mid-2026. UBS similarly raised its year-end target, citing robust central bank buying, persistent inflation pressures, and the likelihood of further policy easing.

Silver's rally, driven by industrial demand and tight supply, outpaces gold in percentage gains. ETF inflows have also favoured silver, reflecting investor appetite for high-beta exposure in the precious metals space.

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