Update: Gold Trading Higher Again on Expectations for a Cut to U.S. Interest Rates

02:00 PM EST, 12/01/2025 (MT Newswires) -- (Updates prices.)

Gold traded higher midafternoon on Monday, climbing for a seventh-straight session as traders anticipate another cut to interest rates from the Federal Reserve next week.

Gold for February delivery was last seen up US$18.50 to US$4,273.40 per ounce, after earlier touching US$4,299.60, the highest since the Oct. 20 record price of US$4,359.40.

The Federal Reserve's policy committee is expected to end its two-day meeting on Dec. 10 with a 25 basis point cut to interest rates. The CME FedWatch Tool now sees an 87.4% probability for a cut to rates at the meeting, up from 63% a month earlier. Lower interest rates cut the carrying cost of owning gold, which pays no interest, while an uncertain U.S. fiscal outlook amid President Donald Trump's trade wars is also offering support.

"A combination of Fed rate-cut expectations, currency debasement concerns, fiscal debt anxiety and sticky inflation continues to underpin the (precious metals) sector," Saxo Bank noted.

The dollar was lower early, also bullish for gold. The ICE dollar index was last seen down 0.09 points to 99.37. Treasury yields rose, with the U.S. two-year note was last seen paying 3.545%, up 4.3 basis points, while the yield on the 10-year note was up 8.0 points to 4.098%.

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