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Gold rises as US interest rates drop

Gold prices rose on Tuesday, December 3, 2024, supported by growing expectations of a U.S. interest rate cut this month, with focus on upcoming economic data for further insights into the monetary policy of the world’s largest economy.

Gold rose in instant trading by 0.1% to $2,642.42 per ounce on Tuesday this morning, after falling around 1% on Monday (December 2).

U.S. gold futures rose 0.3% to $2,665.30, according to Reuters.

Federal Reserve member Christopher Waller said that given continued expectations of inflation falling to 2%, he was inclined “at the moment” to support another interest rate cut later this month.

These comments raised investors’ expectations for an interest rate cut to almost 75% at the US central bank’s December 17-18 meeting.

Gold, which does not generate a return, thrives on low interest rates.

As for other precious metals, silver rose in spot trading by 0.3% to $30.60 an ounce, platinum stabilized at $946.60 and palladium rose by 0.5% to $985.86.

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