Gold is on its way to achieving monthly gains amid expectations of a US interest rate cut

Gold prices rose today, on track to record gains for the fourth month in a row, supported by investor optimism regarding a cut in US interest rates next month.

By 03:03 GMT, gold in instant transactions rose 0.8 percent to $4,189.61 per ounce, recording its highest levels since November 14, and is heading towards weekly gains of three percent and monthly gains of 3.9 percent.

US gold futures for December delivery rose 0.5 percent to $4,221.30 an ounce.

According to the CME Fed Watch tool, expectations for a US interest rate cut in December rose to 87 percent from 85 percent a day ago and 50 percent last week.

Comments from San Francisco Federal Reserve Bank President Mary Daly and US Federal Reserve Board of Governors member Christopher Waller this week reinforced expectations for an interest rate cut next month.

Kevin Hassett, the leading candidate to succeed Jerome Powell as Federal Reserve Chairman, also said that interest rates should be lower, in line with President Donald Trump’s vision.

However, a number of Federal Reserve bank presidents called for temporarily suspending monetary easing until it is confirmed that inflation is moving towards the central bank’s target of two percent.

Non-yielding gold tends to boom when interest rates are low.

The dollar is heading towards its worst week since late July. The decline of the dollar makes gold priced in the US currency more attractive to holders of other currencies.

Investors say that Hassett’s assumption of the position of Fed Chairman may put pressure on the dollar.

As for other precious metals, silver in spot transactions jumped 1.4 percent to $54.18 per ounce.

Platinum rose 1.7 percent to $1,634.82, and both gained 7.4 percent during the week.

While palladium lost 0.6 percent to $1,428.62 per ounce, but it is heading towards weekly gains of four percent.