Gold prices head for fourth straight monthly increase

Gold prices pushed higher on Friday, keeping the market on track for its fourth straight month of gains, as traders doubled down on hopes that the US Federal Reserve will lower interest rates in December.

By early morning in London, spot gold had climbed 0.8 percent to $4,189.61 an ounce, touching a two-week peak and its strongest level since November 14. Investors now expect roughly a 4 percent rise for the month, while weekly gains are seen around 3 percent, reflecting a run driven largely by sentiment rather than heavy trading volumes.

Betting on cheaper money

Markets have grown more confident that borrowing costs will soon ease. Interest rate futures currently show close to nine-in-ten odds of a December rate cut, a sharp jump from last week when views were far more divided.

Recent remarks from top Fed officials, including statements from Mary Daly and Christopher Waller, appeared to reassure traders that a shift could be near, even as some regional presidents continue to argue for patience until inflation cools further.

Thin trading and limited liquidity, analysts say, have also played a part. With fewer large buyers and sellers available, even modest interest has moved prices more noticeably. For many global investors, the strategy has been to get in early and brace for a lower-rate climate, where non-interest-earning assets such as gold traditionally draw stronger demand.

A softer US dollar has added to the momentum. The greenback is reportedly facing its weakest weekly performance since July, making gold a more appealing bet for buyers using other currencies.

Silver and platinum also enjoyed sizable weekly gains, while palladium picked up despite minor intraday losses.

Gold price in Pakistan

In Pakistan, gold prices held firm on Thursday. The All-Pakistan Gems and Jewellers Sarafa Association listed 24-carat gold at Rs438,862 per tola and Rs376,253 per 10-grams, unchanged from the previous session. The 22-carat 10-gram price was quoted at Rs344,911.

Traders in local markets expect the recent global upswing could nudge domestic rates higher in coming sessions, particularly if the rupee remains under pressure amid overseas dollar softness.

Bullion dealers say customers are taking a more cautious but curious approach, keeping an eye on the rate outlook before making big purchases ahead of the wedding season. 

Web Desk