Gold Rises Amid Expectations of Interest Rate Cuts

Gold prices rose during early Asian trading on Wednesday, driven by optimism regarding the possibility of the Federal Reserve (the U.S. central bank) cutting interest rates in December. Spot gold increased by about 0.2 percent, reaching $4,136.59 per ounce by 0054 GMT, while U.S. gold futures for December delivery fell by about 0.1 percent to $4,134. Markets currently expect an 84 percent chance of interest rate cuts next month, compared to just 50 percent last week, according to CME data. Gold, which does not yield returns, tends to rise in a low-interest-rate environment and during periods of geopolitical uncertainty. On the geopolitical front, prices were negatively impacted by Ukrainian President Volodymyr Zelensky's statement that Ukraine is ready to move forward with a U.S.-backed framework to end the war with Russia and discuss disputed points with former U.S. President Donald Trump in talks that he said should include European allies. The U.S. weekly unemployment claims report is scheduled to be released later on Wednesday. For other precious metals, silver fell in spot transactions by 0.1 percent to $51.36, platinum dropped by 1 percent to $1,538, and palladium decreased by 1.1 percent to $1,382.24.