Gold prices slipped slightly in Asian trading on Thursday, easing after a strong run earlier in the week. The market remained supported by growing expectations that the U.S. Federal Reserve will cut interest rates in December.
Confidence in lower rates increased further as speculation rose about a more dovish successor to Fed Chair Jerome Powell. Weak U.S. economic data also strengthened the belief that interest rates will fall over the longer term.
The U.S. dollar weakened on these expectations, helping the broader metals market move higher. Silver performed especially well, coming close to record highs, while platinum also posted solid gains on Thursday.
Spot gold dipped 0.3% to $4,152.35 an ounce by 00:08 ET (05:08 GMT), while gold futures slipped 0.4% to $4,184.15 an ounce.
Rate-Cut Bets Lift Gold Prices
Gold remained up more than 2% for the week as traders raised their expectations of a rate cut next month. According to CME FedWatch, markets now price in a 79.8% chance of a 25-basis-point cut at the Fed’s December 9–10 meeting. This is a sharp jump from just 24% a week earlier.
Two Federal Reserve policymakers publicly supported a December rate cut. A series of weak U.S. economic reports added to the belief that the Fed may ease policy to prevent deeper economic weakness.
Geopolitical risks also boosted demand for safe-haven assets. Limited progress toward a U.S.-brokered ceasefire between Russia and Ukraine, along with rising tensions between Japan and China, helped support gold buying.
Other precious metals moved lower with gold on Thursday. Spot silver fell 0.7% to $52.9525 an ounce after nearing record levels, while spot platinum gained 1.7% to $1,616.76 an ounce. The immediate driver behind platinum’s jump remained unclear.
Lower interest rates usually increase the appeal of non-yielding assets like gold, as investors often shift away from government bonds in such an environment.
Focus Turns to the Next Fed Chair
Bloomberg reported that White House National Economic Council Director Kevin Hassett is the leading candidate to replace Jerome Powell when his term ends in May 2026.
Hassett is viewed as a close ally of President Donald Trump and is expected to support the president’s push for significantly lower interest rates. Analysts at ANZ noted that markets see him as someone likely to bring Trump’s rate-cutting stance directly into Fed policy.
Trump has repeatedly called for aggressive rate cuts to support the U.S. economy. While the Fed has resisted these calls due to inflation concerns, several Fed officials recently said that supporting the labor market now takes priority. They also expect price pressures to cool further in the coming months.
