Gold hovers near two-week high

Gold prices dipped to around $4,150 per ounce on Thursday but remained perched near a two-week high, as investors continued to brace for a likely rate cut by the Federal Reserve next month.

Despite surprisingly low initial jobless claims and stronger-than-expected durable goods orders earlier this week, market sentiment has stayed heavily tilted toward easing — suggesting that solid economic activity has not shaken confidence in a shift toward easier monetary policy.

Traders are now assigning roughly an 80% probability to a 25 basis-point rate cut at the Fed’s final meeting of 2025.

Fueling those expectations, the surprising ascendance of Kevin Hassett — long viewed as a staunch fiscal hawk — as front-runner for Fed chair under Donald Trump has sparked speculation that he may steer the central bank toward a dovish stance aligned with the president’s economic priorities.

That possibility has reignited safe-haven demand among bullion buyers, particularly given mounting geopolitical risks and lingering concerns over global growth.

Meanwhile, gold is on track for a fourth consecutive monthly gain and has surged by nearly 60% this year.

If current trends hold, it could be headed for its best annual performance since 1979 — a milestone that only underscores how dramatically investor expectations have shifted in favor of easier policy and renewed demand for non-yielding assets like bullion.