Gold Benefits from Declining Expectations of US Interest Rate Hike

Gold prices witnessed an increase in Wednesday's trading, supported by declining expectations regarding the US Federal Reserve's move to raise interest rates next month. Gold futures contracts for December recorded an ascent, and spot gold contracts also rose during the same trading session. The yellow metal had reached its highest level in 10 weeks on Tuesday but closed lower at settlement for the second time this month. In this context, Kelvin Wong, a senior market analyst at Oanda, stated that "the main driver for gold's rise is the decline in expectations for the Federal Reserve to raise interest rates." Last Friday, gold registered its largest weekly gains since January 2026, after weaker-than-expected jobs data prompted traders to reduce their bets on a US interest rate hike. Traders' current expectations indicate a 50% probability of an interest rate hike in September 2026, a decrease from 60% before the jobs report was released.