The gold metal has been trading in a bullish trend, breaking through $4,200 since the intraday trade of last weekend amid speculation that the Federal Reserve (Fed) will cut interest rates in December.
Currently, market players are assessing the release of the Purchasing Managers’ Index (PMI) report for November which will be presented late tonight (Monday).
At 9.15 am, the price of gold was at $4,228, up 0.33% since it opened in early trading on Monday in the Asian session.
Expectations of monetary easing in the United States remain a key driver for gold’s rise in recent weeks. Market players are increasing their bets that it will be lowered following the latest weak economic data and dovish statements from several Fed officials.
According to the CME FedWatch Tool, financial markets are now pricing in a nearly 87% probability of a rate cut at the end of the December 9-10 Fed meeting, up from a 71% chance last week.
In addition, talks on a peace plan between the United States and Ukraine are optimistic that it could reduce the appeal of gold as a safe-haven asset.
US Secretary of State Marco Rubio said the meeting between US and Ukrainian officials was very productive, but much work remains to be done to end Russia's war in Ukraine.
US President Donald Trump's special envoy Steve Witkoff will travel to Moscow to meet Vladimir Putin this weekend.
