Gold prices rise amid expectations of a reduction in US interest rates

Gold prices rose during early Asian trading on Wednesday, driven by optimism about the possibility of the Federal Reserve (the US central bank) cutting interest rates in December.

Gold increased in spot transactions by about 0.2%, recording $4,136.59 per ounce by 00:54 GMT, while US gold futures contracts for December delivery fell by about 0.1% to $4,134.

Markets currently expect 84% to cut interest rates next month, compared to only 50% last week, according to CME data, according to Reuters.

Gold, which does not yield a yield, rises in a low interest rate environment and during periods of geopolitical uncertainty.

On the geopolitical level, prices were negatively affected by Ukrainian President Volodymyr Zelensky’s statement that Ukraine is ready to move forward with a US-backed framework to end the war with Russia and discuss disputed points with US President Donald Trump in talks that he said should include European allies.

The US weekly unemployment claims report is scheduled to be released later on Wednesday.

As for other precious metals, silver fell in spot transactions by 0.1% to $51.36, platinum fell 1% to $1,538, and palladium fell 1.1% to $1,382.24.