Gold hits two-week high on rate cut bets

Gold climbed 2% to $4,080 per ounce on Monday, hovering near its highest level since October 24, driven by growing expectations of a Federal Reserve interest rate cut in December, despite policymakers’ efforts to downplay the likelihood of such a move.

Recent data showed US consumer sentiment fell sharply in November to its second-lowest reading on record, reflecting mounting concerns over the prolonged government shutdown, the longest in US history.

Meanwhile, the economy lost jobs in October amid declines in the government and retail sectors, while layoffs surged to a 20-year high.

Traders now see nearly a 70% probability of a December rate cut. In Washington, the US Senate passed the first stage of a bill to end the shutdown, narrowly securing the required 60 votes.

Eight Democratic senators broke ranks to back the measure, which includes funding for the Departments of Agriculture, Veterans Affairs, Congress, and several other agencies.