Gold rises on Fed rate cut bets, growth worries
Gold’s glitter is proving irresistible once again as traders rush to the shiny metal amid rising bets on a Federal Reserve rate cut and spiking economic jitters. With the U.S. economy showing signs of strain—including job losses and sinking consumer confidence—gold has morphed from a luxury into a sanctuary, climbing close to its recent highs. It seems investors think the Fed’s cautious retreat on rates might just be the spark gold needs to shine brighter in these uncertain times.
Recent market movements reinforce gold’s traditional role as a safe haven amid downturn fears. On November 10-11, 2025, gold prices rose around 0.7-3%, reaching above $4,100 per ounce, fueled by nearly 70% probability of a December Fed rate cut. This surge aligns with dismal U.S. economic indicators such as October job losses in government/retail sectors and a significant drop in consumer sentiment to historic lows. Additionally, geopolitical tensions and a protracted U.S. government shutdown have amplified risk aversion, further boosting gold demand. Despite some government relief hopes potentially tempering extreme moves, buyers’ appetite—especially via ETFs—reflects a cautious but persistent quest for portfolio protection as the year closes.[1][2][3][4][6][7]
