Gold gains near 1% at settlement for 2nd straight session

Gold alloys

Gold prices strengthened their gains today, Dec. 10, recording the highest level since the end of the Nov. 22 session ($2,737.20), as expectations that the Federal Reserve will cut interest rates next week for the third time this year loom.

At the settlement of today’s trading, gold futures prices for February 2025 delivery jumped by 1.2%, or $32.60, reaching $2,718.40 per ounce after adding about 1% during yesterday's trading.

The yellow metal’s gains were capped by the 0.25% increase in the US dollar index, which gauges the greenback's strength against a basket of six currencies, to stand at 106.40 points at 10:51 pm Makkah time.

Global markets are projected to witness a broad-based monetary policy easing cycle, with meetings of central banks in Canada, Switzerland and Europe due later this week.

All eyes are also on the Federal Reserve’s policy meeting to be convened on Dec. 17-18. Investors are pricing in an 86.1% chance of a 25-bp rate cut, compared to a 72.9% probability a week ago, according to the CME FedWatch Tool.