Gold Climbs Above $4,090 as Fed Signals Boost Easing Expectations

Gold extended its advance today, reaching $4,092.06 (+0.67%) by 17:36 GMT+2, supported by growing expectations of a near-term Federal Reserve rate cut. Investors are weighing dovish comments from senior Fed officials, including New York Fed President John Williams and Fed Governor Christopher Waller, who highlighted room for policy easing amid a cooling labor market and moderate inflation pressures.

Over the past week, gold has gained 0.62%, while its six-month performance stands at +23.86%. Year-to-date, the precious metal has surged 55.91%, and over five years, it has climbed nearly 123%, reinforcing its role as a safe-haven asset amid ongoing global uncertainty.

Market sentiment remains sensitive to Fed developments, as traders adjust expectations around potential interest rate cuts in December. At the same time, geopolitical tensions, particularly fragile Russia-Ukraine peace negotiations, continue to underpin demand for gold on market dips.

The broader macro backdrop also supports the metal: a relatively soft US Dollar, mixed Treasury yields, and uncertainty in risk assets keep safe-haven flows active. With key inflation and employment data delayed until mid-December, gold remains influenced by policy expectations and defensive positioning rather than immediate economic releases.

Trading activity today was robust, with more than 451,000 recorded transactions, reflecting continued investor interest as gold maintains its gains. While risk sentiment has improved slightly, the metal remains a favored store of value and hedge against market volatility and currency depreciation.

For now, gold is holding firmly above $4,090, with the market closely watching the evolution of Fed policy and global developments. Its performance underscores both the resilience of the metal and the ongoing influence of macroeconomic and geopolitical factors on investor behavior.