Gold Trades Higher on Rising Expectations for a Cut to U.S. Interest Rates

09:05 AM EST, 11/26/2025 (MT Newswires) -- Gold traded higher early on Wednesday, buoyed by rising expectations the Federal Reserve will again cut interest rates next month.

Gold for February delivery was last seen up US$23.80 to US$4,201.10 per ounce, only the second time the metal has traded above US$4,200 since closing at a record US$4,359.40 on Oct.20.

The rise comes as weak U.S. economic data released Tuesday raised expectations the Federal Reserve's policy committee will again cut interest rates at the Dec.10 end to its two-day policy meeting. The reports showed retail sales growth slowed to 0.2% in September, under expectations for a 0.3% rise, while wholesale price inflation in that month was steady at a 2.7% annualized rate.

Following the data, the CME FedWatch Tool now sees a 82.9% probability for a 25 basis point cut to interest rates next month, up from 30.1% a week earlier.

The dollar was higher early, with the ICE dollar index last seen up 0.23 points to 99.9. Treasury yields also rose, with the U.S. two-year note last seen paying 3.491%, up 2.8 basis points, while the yield on the 10-year note was up 2.3 points to 4.023%.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.