Gold Steady After Three-Day Gain With More US Rate Cuts Expected
Bloomberg Gold steadied after three days of gains, supported by the prospect of further monetary easing in the US following a rate cut this week. Silver traded near a record high. Bullion was near $4,285 an ounce and is headed for a weekly advance of more than 2%. Federal Reserve policymakers left the door open to more interest-rate cuts next year after lowering the cost of borrowing on Wednesday. Swaps traders are betting on two reductions in 2026, even as the US central bank signals only one. Most Read from Bloomberg A lower interest-rate environment is a tailwind for precious metals, which don’t pay interest. Adding further support to bullion, the Fed will on Friday begin buying $40 billion of Treasury bills per month as it looks to rebuild reserves in the financial system. Gold has surged more than 60% this year and silver has more than doubled, with both metals on track for their best annual performances since 1979. The scorching rallies have been underpinned by elevated central-bank buying and a retreat by investors from sovereign bonds and currencies. Bullion’s structural uptrend has further room to run, aid Dilin Wu, a research strategist at Pepperstone Group Ltd. “A surprise uptick in December or January CPI could trigger a brief pullback, but as long as the Fed maintains a dovish stance, the medium-term bullish trend is likely to remain intact,” she said. Holdings in gold-backed exchange-traded funds have risen every month this year except May, according to the World Gold Council. Meanwhile, silver has been bolstered in recent weeks by surging demand, as well as tightness and dislocations across major trading hubs. The white metal hit a record of $64.3120 an ounce on Thursday. “Gold’s momentum is set to carry into 2026 as solid central-bank demand and renewed ETF inflows, coupled with easier policy and persistent geopolitical tension, keep the macro backdrop firmly supportive,” said Hebe Chen, a senior market analyst at Vantage Markets in Melbourne. Gold rose 0.1% to $4,285.66 an ounce as of 3:42 p.m. in Singapore. Silver advanced 0.4% to $63.79. Platinum was flat, while palladium climbed. The Bloomberg Dollar Spot Index was flat, having fallen 0.3% in the previous session. Most Read from Bloomberg Businessweek ©2025 Bloomberg L.P.