Gold prices slipped slightly on Thursday, easing after a strong rally earlier in the week. Investors grew more confident that the U.S. Federal Reserve will cut interest rates in December, which had pushed gold higher in recent sessions.
Expectations for a more dovish successor to Fed Chair Jerome Powell also strengthened the view that lower rates may continue over the long term. A series of weak U.S. economic reports added to this belief.
The dollar weakened on these expectations, helping boost demand for metals overall. Silver approached its record highs, while platinum outperformed during Thursday’s session.
Spot gold dipped 0.1% to $4,160.10 an ounce by 06:34 ET (11:34 GMT), and gold futures declined 0.2% to $4,192.40 per ounce.
Rate Cut Bets and Safe-Haven Demand Lift Gold
Over the past week, spot gold remained up more than 2%. The metal posted solid gains as traders increased their expectations that the Fed will cut rates at its December 9–10 meeting.
According to the CME FedWatch tool, markets now see about an 85% chance of a quarter-point rate cut, a sharp rise from 39% only a week ago.
Comments from two Fed policymakers and a series of soft economic indicators deepened expectations that the central bank will move to support a weakening labor market.
Geopolitical risks also supported gold. Limited progress on a U.S.-brokered ceasefire between Russia and Ukraine, along with rising tensions between Japan and China, increased demand for safe-haven assets.
Lower interest rates typically boost the appeal of non-yielding assets like gold. In such environments, investors often shift out of government bonds and into alternative stores of value.
In political developments, Bloomberg News reported that Kevin Hassett, director of the White House National Economic Council, is now seen as the leading candidate to replace Jerome Powell when his term ends in May 2026.
Hassett is considered a close ally of President Donald Trump and is widely expected to support the president’s push for significantly lower interest rates, according to analysts.
