Gold rises amid geopolitical tensions and Fed rate cut expectations

Gold surged above $2,640 per ounce on Monday, driven by its safe-haven appeal amid rising geopolitical tensions in the Middle East and China’s resumption of gold purchases.

Gold rises amid geopolitical tensions and Fed rate cut expectations

Rebel forces in Syria ousted President Bashar al-Assad on Sunday, ending the Assad family’s 50-year rule and heightening concerns over regional instability. At the same time, China’s central bank resumed buying gold for its reserves in November after a six-month hiatus, adding further support to the precious metal. Additionally, Friday’s U.S. jobs report showed signs of a cooling labor market, reinforcing expectations that the Federal Reserve may cut interest rates again.

Markets see 83% chance of Fed rate cut, boosting gold's appeal

According to the CME FedWatch tool, markets anticipate an 83% chance of a 25-basis point rate cut at the Fed's final meeting of the year, reducing the opportunity cost of holding gold and enhancing its attractiveness.