Gold prices rose for a third straight session on Wednesday, hitting new weekly highs, helped by a fading dollar rally and escalating geopolitical tensions fueling interest in safe haven assets, Reuters reports.
Spot gold rose 0.21% to $2,637 an ounce, hitting a fresh high since Nov. 11. Futures rose 0.38% to $2,641.
The U.S. dollar has stalled after hitting a yearly high last week, boosting the appeal of the low-yielding precious metal.
Traders now see a 58.9% chance of a 25 basis point cut in December. Strong recent data and President-elect Donald Trump’s proposed tariffs point to a longer-term stay of higher rates.
The market is adjusting expectations for a rate cut next year amid rising inflation, which could be a negative for gold.
Meanwhile, Kansas City FRS President Jeffrey Schmid said it remains unclear how much rates might be cut, although the initial cuts implemented by the U.S. central bank are an expression of confidence that inflation is returning to the 2% target.