Washington, DC – Global gold prices saw a significant rise in trading on Wednesday. This was primarily driven by a decline in expectations and bets regarding a US Federal Reserve interest rate hike at its upcoming meeting next month. Consequently, this increased investor demand for the precious metal as a safe haven.
Details of the movement of trades, spot and futures contracts
Morning trading data showed that by 9:25 AM Moscow time, December gold futures (COMEX) had risen by 0.17%, reaching $4,448.70 per ounce. Similarly, spot gold gained an additional 0.45%, trading at $4,389.81 per ounce. This positive performance follows Tuesday’s surge to a ten-week high. However, gold experienced a slight decline at the close, marking only the second time this month that prices have fallen.
Drivers of the rise and expectations of US interest rates
Commenting on the current situation, Kelvin Wong, senior market analyst at OANDA, explained that the primary driver behind gold’s continued rise is the diminishing expectation that the Federal Reserve will tighten monetary policy and raise interest rates. The precious metal capped off last week’s trading on Friday with its largest weekly gain since January 2026. This significant shift followed the release of the US jobs report, which fell short of market expectations. Consequently, traders and investors have considerably reduced their bets regarding the timing and magnitude of a US interest rate hike.
Feedwatch readings for financial markets
Data from CME Group’s FedWatch tool indicates a clear shift in investor sentiment. Markets are now pricing in only a 50% probability of an interest rate hike in September 2026. This represents a significant drop from the 60% probability that prevailed before the latest jobs report. Markets continue to await subsequent economic data to more accurately determine the Federal Reserve’s future monetary policy direction.
