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

02:04 PM EST, 11/26/2025 (MT Newswires) -- (Updates prices.)

Gold traded higher midafternoon 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$26.00 to US$4,203.30 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 edged down, with the ICE dollar index last seen down 0.4 points to 99.62. Treasury yields also rose, with the U.S. two-year note last seen paying 3.493%, up 2.8 basis points, while the yield on the 10-year note was up 0.7 points to 4.007%.

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