Gold prices add 1% to close at two-week high

Gold alloys

Gold prices finished in the green today, Dec. 9, hitting the highest close since the end of trading on Nov. 22 ($2,737.20/ounce), amid expectations of an interest rate cut by the Federal Reserve next week.

Upon settlement of trading, gold futures prices for February 2025 delivery increased by 0.95%, or $25.90, to $2,685.50 per ounce, after the yellow metal touched $2,700 earlier in the session.

This came as the US dollar index, which gauges the greenback's strength against a basket of six currencies, stabilized at 106.11 points at 10:42 pm Makkah time.

The session's gains were attributed to the escalation of geopolitical woes in Syria, in tandem of the People's Bank of China’s resumption of gold purchases for the strategic reserve in November, after a six-month hiatus.

The CME FedWatch Tool showed markets pricing in an 85.8% chance of the Fed cutting rates by 25 basis points at its December meeting, up from 61.6% a week ago.