2025-11-28 11:24:09
|
129
0
Gold Price Surge: 2.2% Weekly Gain Amid Renewed Fed Rate Cut Expectations
Spot gold exhibited a robust rebound this week, advancing from an initial low of approximately $4,075 per ounce to a two-week high near $4,165, posting a weekly gain of around 2.2%. This rally was primarily driven by heightened market expectations for a Federal Reserve rate cut in December. Optimism surrounding a lower interest rate environment has bolstered golds appeal as a non-yielding safe-haven asset, particularly against the backdrop of U.S. economic indicators revealing softening consumer spending and employment trends. Investors have accelerated allocations to gold to hedge against uncertainty, with safe-haven inflows more than offsetting temporary pressure from a rebounding U.S. dollar index. Year-to-date, gold has surged over 57%, marking its strongest annual performance in recent years and underscoring sustained confidence among institutional and retail investors in its long-term strategic value.
Detailed Price Performance
Spot gold initiated a swift recovery early in the week, peaking at a two-week high of $4,165 per ounce on Wednesday, November 26, before settling in the $4,154-$4,162 range by weeks end. December U.S. gold futures closed at $4,144.70 per ounce. The upturn was fueled by U.S. September retail sales rising a mere 0.2% month-over-month—below expectations—coupled with benign producer price index (PPI) readings indicating moderate inflation pressures. These developments, compounded by delays in key data releases due to the 43-day government shutdown, reinforced market convictions of a dovish Federal Reserve pivot. Trading volume for Shanghai Gold Exchange Au9999 contracts expanded by 15%, signaling strong domestic investor participation aligned with global trends, while institutional inflows via ETFs and physical gold further solidified the price foundation. Technically, while $4,150 presents near-term resistance, bullish momentum remains firm, with support levels shifting upward to $4,120.
Federal Reserve Rate Cut Expectations Intensify
Federal Reserve officials, including Governor Christopher Waller and New York Fed President John Williams, explicitly endorsed a 25 basis point cut in December, with CME FedWatch Tool probabilities surging from 70% at the weeks start to 81-85%. The latest Beige Book, released in the early hours of November 27, amplified these expectations, noting broadly stable U.S. economic activity but highlighting further declines in consumer spending and cooling employment conditions. Premium consumption demonstrated resilience, while mid- and low-end segments suffered from government shutdown impacts; manufacturing and retail sectors faced escalating cost pressures from tariffs. These indicators substantiate a narrative of economic moderation without collapse. Gold, as a non-yielding asset, stands to gain directly from lower rates, complemented by weak ADP private payrolls data (just 13,500 jobs added, well below forecasts) and broader labor market softening, which have propelled safe-haven flows into the metal.
Key Market Drivers
Persistent geopolitical tensions and global trade uncertainties continue to provide robust support for gold, notably escalating Middle East conflicts and recurring U.S.-China frictions, prompting U.S. and European investors to pivot toward safe-haven positioning. Emerging market central banks, including those in India and China, added to reserves this week, with global central bank purchases exceeding 1,200 tonnes annually—a record high—that has firmly underpinned prices. September retail sales edged up 0.2% month-over-month, indicating cooling demand without a downturn, while producer price inflation remained contained, aligning with the Feds gradual easing outlook. The U.S. dollar index eased 0.3% over the week, offering additional tailwinds. Combined with resurgent inflation expectations and year-end institutional rebalancing, gold retains upside potential in the near term, though equity market volatility warrants caution for potential pullbacks.
Next Weeks Key Economic Calendar and Gold Price Signals
Global economic releases intensify next week, with U.S. markets regaining liquidity post-Thanksgiving but volumes potentially subdued by year-end positioning. China and U.S. ISM Manufacturing PMIs on December 1 will gauge worldwide growth momentum, with softer readings likely to reinforce rate cut bets. December 3 brings Australia Q3 GDP, ADP employment, and U.S. ISM Services PMI—critical previews influencing AUD dynamics and Non-Farm Payrolls directionality. The weeks centerpiece on December 5 features U.S. November Non-Farm Payrolls, unemployment rate, and average hourly earnings; sub-200,000 job adds or unemployment above 4.3% would sharply elevate December FOMC cut odds, while robust figures could trigger gold retracement to $4,120 support. The FOMC meeting on December 9-10 culminates proceedings, with rate-hold probability at 15% and a 25 basis point cut as the baseline. Investors should vigilantly track employment metrics for slowdown confirmation; unexpectedly strong data may cap gold at $4,150 resistance and probe $4,100.
Upway Global: At the Forefront of Gold Trading and Market Excellence
As one of the elite members of the Hong Kong Gold Exchange (HKGX) with AA operation status (Membership No. 084) and a core member of the Bullion Group, Upway Global was recently awarded the prestigious "Authorised Good Delivery Bars Minter" certification—the highest standard in refining and delivery of physical gold bars, confirming its capability to produce gold bars that meet international purity and quality standards. This recognition signifies Upway Global’s commitment to upholding industry-leading professionalism and integrity while reinforcing Hong Kong’s position as Asia’s global gold trading hub.
Demonstrating robust market strength, Upway Global’s daily transaction volume recently surpassed USD 80 billion, setting a record and underscoring its role as a market leader. With over 1.2 million active traders and a cumulative order volume exceeding 600 million, Upway Global continues to foster a trading ecosystem characterised by transparency, security, and efficiency. The company’s average monthly trading volume in 2025 exceeded USD 575 billion, making it the top performer on the HKGX platform.
简体中文
繁體中文
Gold/Silver CFDs
Accounts
Wallet
Promotions
Trading Tools
News Updates
Economic Calendar
Investment Academy
Beginner’s Guide
Anti-Fraud Guide
FAQs
Upway APP
Upway Desktop
CTOTrader
Upway HD
MetaTrader 4
MetaTrader 5
About Upway
Company News
Affiliate Program
Contact Us
