Gold and silver shine again amid profit taking

Gold prices stabilized after reaching their highest level in six weeks today, amid an early wave of risk aversion in the markets, with investors focusing on the possibility of a cut in US interest rates later this month.
Silver reached a record high.

Gold rose in instant transactions by 0.1 percent, recording $4,235.59 per ounce by 06:45 GMT, after reaching the highest level since October 21.

US gold futures for December delivery rose 0.3 percent to $4,269.40 an ounce.

Silver rose 1.1 percent to $56.99 per ounce, after previously reaching an all-time high of $57.86.

The dollar fell to its lowest level in two weeks, making dollar-denominated gold less expensive for holders of other currencies.

Kelvin Wong, chief market analyst at OANDA, said: “We are witnessing a session of risk aversion in Standard & Poor’s futures, which fell 0.8 percent in line with heavy selling in major cryptocurrencies. This in turn reinforced a positive support ring for gold as a safe haven in today’s session, which was characterized by weak trading.”

US stock futures fell in Asian trading.

The cryptocurrency Bitcoin fell 3.6 percent to $87,881.82, and Ether fell five percent to $2,871.59.

The latest statements that tend to facilitate monetary policy from Christopher Waller, a member of the Federal Reserve (the US central bank), and John Williams, President of the Federal Reserve Bank of New York, along with weak US data, have strengthened expectations that the Federal Reserve will cut interest rates in December.

Markets currently expect 87 percent of interest rate cuts this month, according to the CME Group’s Fed Watch tool.

Markets are awaiting the release of core personal consumer spending index data in the United States on Friday, searching for more indications about the course of the Federal Reserve’s monetary policy.

Gold, which does not yield a return, rises when borrowing costs fall.

Wong said that silver prices rose amid the scarcity of liquidity resulting from the suspension of the CME Group last week, and not due to any fundamental factors.

As for other precious metals, platinum rose 1.3 percent to $1,694.18, and palladium increased 1.4 percent to $1,471.94.