Gold prices soar on Fed rate hike bets

Gold prices advanced today, Nov. 29, with the US dollar weakening as investors assessed expectations of another interest rate increase by the Federal Reserve.

Gold futures for December delivery gained 0.70% to $1,767.60 an ounce at 10:27 am Makkah time, with spot prices also up 0.61% to $1,752.50 per ounce.

Similarly, silver futures for December delivery surged 1.20% to $21.16 an ounce as the spot price of platinum jumped 1.02% to $998.97 per ounce. Likewise, the spot price of palladium expanded by 1.58% to $1,873.72 an ounce.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, shed 0.25% to 106.39 points.

In a research note, Deutsche Bank AG suggested that, amid the current clear signs of slowing inflation in light of the steep rise in unemployment rate, the Fed is likely to make a 200-basis-point (bp) interest rate cut by mid-2024.

On the other hand, Federal Reserve Bank of St. Louis President James Bullard said financial markets are underestimating the chances that policymakers will need to be more aggressive next year in raising interest rates to tame inflation.