Benghazi – Spot gold prices saw a slight increase of 0.1% on Wednesday, reaching $4212.50 per ounce, after declining by more than 1% in the previous session. U.S. gold futures for December delivery also rose by 0.7% to register $4250.80 per ounce.
Futures trading shows that the probability of an interest rate cut next week has risen to 89%, compared to 85% a week ago, amid U.S. economic data indicating a limited slowdown in economic activity.
Analysts believe that gold, as a non-yielding asset, typically benefits from expectations related to interest rate cuts, as the opportunity cost of holding it decreases.
In a related context, U.S. President Donald Trump stated that he intends to announce the nominee who will succeed Jerome Powell as Chairman of the Federal Reserve early next year.
On another note, the World Gold Council reported that central banks purchased 53 tons of gold during the month of October, an increase of 36% compared to the previous month, marking the highest monthly demand level since the beginning of 2025.
As for other metals, silver rose by 0.8% to reach a new record level of $58.94 per ounce, amid indications of supply shortages in China and at commodity exchange storage centers.
Platinum also declined by 0.1% to reach $1636.10, while palladium rose by 0.1%, registering $1463.43.
