Gold rallies as investors weigh chances of US December rate cut
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The news: Gold miners rose on the ASX as spot gold picked up after seeing its worst weekly decline since 2021 last week.
The numbers: Bellevue Gold (4.3%), Westgold Resources (3.5%) and Regis Resources (2.8%) led advances by ASX 200 gold stocks by 1:30pm AEDT. Materials, up 1.15%, was the third best performing sector, as the wider market edged up 0.1%.
Spot gold lifted more than 1% to above USD2,597 ($4,009) an ounce, after a loss of more than 4% last week, according to Bloomberg data.
The context: Gold prices strengthened after a recent advance by the US dollar eased. Gold has fallen around 7% since hitting a record high last month, with the US election result helping the greenback to a two-year high.
While Donald Trump's policies are expected to be inflationary — reducing the chances of further interest rate cuts next year and pushing gold prices down — traders are weighing up the chances of a rate cut next month before the president-elect's inauguration, which may bolster gold prices.
The source: Bloomberg
