Muscat: Gold extended gains to a near three-week high today, as growing expectations of another US Federal Reserve interest rate cut in December lifted demand for the safe-haven asset. Spot gold was up 0.4% at $4,131.83 per ounce, its highest since 24 October 2025. US gold futures for December delivery rose 0.4% to $4,138.70 per ounce.
According to Oman News Agency, the anticipation of a potential interest rate cut by the US Federal Reserve has spurred investors to seek the security of gold, driving up its value. The market’s focus remains on the Federal Reserve’s upcoming decisions, with many investors betting on a rate cut to bolster economic growth.
Demand for gold typically rises in times of economic uncertainty or potential monetary easing, as it is considered a hedge against inflation and currency fluctuations. The recent trend indicates that investors are positioning themselves in anticipation of such economic conditions.
The Federal Reserve’s policy decisions are closely watched by global markets, influencing various asset classes, including precious metals. As speculations continue, the gold market may experience further fluctuations based on any new signals from the Federal Reserve regarding its monetary policy stance.