Gold and Metals Climb on Weaker Dollar, Markets Await Key China Data
Gold prices climbed on Friday, supported by a weaker dollar as traders anticipated a December interest rate cut. Geopolitical unrest further fueled demand for the safe-haven asset.The yellow metal had faced weekly losses following the announcement of an Israel-Hezbollah ceasefire, but renewed tensions between Russia and Ukraine helped pare those losses late in the week.
Spot gold rose 0.6% to $2,659.14 an ounce, while gold futures for February delivery increased 0.7% to $2,683.79 an ounce as of 1:24 ET (1824 GMT).
Geopolitical Risks Propel Safe-Haven Appeal
Russia’s intensified strikes on Ukraine’s energy infrastructure this week and threats of ballistic missile attacks on Kyiv heightened global tensions. These actions followed Ukraine's use of Western-supplied long-range missiles, which Russia claimed could escalate the conflict significantly.
Additionally, earlier in November, Moscow lowered its threshold for nuclear retaliation, adding to geopolitical risks.
In the Middle East, skepticism over the Israel-Hezbollah ceasefire grew as both sides accused each other of violating the agreement, further supporting haven assets like gold.
Weaker Dollar Boosts Gold Amid Rate Cut Bets
Gold also benefited from a declining dollar as traders maintained a 68.6% probability of the Federal Reserve cutting rates by 25 basis points in December, according to CME's FedWatch Tool. The remaining 31.4% of traders expect rates to stay unchanged.
The softer dollar made gold more attractive to international buyers, adding to its gains as the year-end approaches.
Broader Metals Gain with Softer Dollar
Among industrial metals, benchmark copper futures on the London Metal Exchange edged up 0.3% to $9,020.50 a ton, while February copper futures held steady at $4.1427 a pound.
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