Gold Prices Soar as Interest Rate Hike Expectations Plummet
Gold prices rose significantly on Wednesday, driven by declining expectations of a US Federal Reserve interest rate hike at its upcoming meeting next month. This increased investor demand for gold as a safe haven.
Morning trading data showed that December gold futures (COMEX) had risen by 0.17%, reaching $4,448.70 per ounce. Meanwhile, spot gold gained an additional 0.45%, trading at $4,389.81 per ounce.
According to Kelvin Wong, senior market analyst at OANDA, the primary driver behind gold's continued rise is the diminishing expectation that the Federal Reserve will tighten monetary policy and raise interest rates. Markets are now pricing in only a 50% probability of an interest rate hike in September 2026, down from 60% before the latest jobs report.