TLDR
- Gold prices increased 0.6% to $4,183.01 per ounce in Friday trading sessions
- November shows 4.6% gains for gold, extending winning streak to four months
- December Fed rate cut probability now stands at 82.8%, up sharply from 28.5% one week prior
- Platinum jumped 2.4% while silver climbed 1.3% to near-record levels at $54.09
- Chicago Mercantile Exchange faced technical disruption affecting futures trading
Gold continued its upward trajectory on Friday as market participants placed stronger bets on Federal Reserve policy changes. The precious metal hit $4,183.01 per ounce, recording a 0.6% increase during Asian market hours.
November has proven successful for gold investors, with the metal accumulating 4.6% gains throughout the month. This extends an impressive run of four consecutive months of positive performance. The weekly results were equally robust, showing nearly 3% growth by November 28.
Expectations surrounding Federal Reserve monetary policy have undergone a dramatic transformation. Current market pricing indicates an 82.8% likelihood of a 25 basis point rate reduction at the December 9-10 Federal Open Market Committee meeting. This represents a sharp contrast to the 28.5% probability traders assigned merely one week earlier, based on CME Fedwatch tracking.
Multiple factors drove this shift in rate cut expectations. Several Federal Reserve policymakers delivered dovish commentary throughout the week. Economic data releases from the United States also disappointed expectations, strengthening arguments for easier monetary conditions.
Dollar Weakness Supports Metal Prices
The U.S. dollar experienced weakness during the week, providing tailwinds for commodity markets. Platinum demonstrated strong performance with a 2.4% surge to $1,643.04 per ounce on Friday. The metal accumulated 4.5% gains across the full November period.
Silver showed particularly impressive strength, advancing 1.3% to reach $54.0905 per ounce. This positions the white metal within striking distance of its historical peak. Silver’s November performance reached 11.3%, outpacing other precious metals.
A weaker dollar makes commodities more affordable for holders of other currencies. This dynamic often leads to increased purchasing activity in gold and related metals when the greenback declines.
Safe haven flows also contributed to gold’s strength. The Russia-Ukraine military conflict remains unresolved, creating ongoing geopolitical uncertainty. Tensions between China and Japan over diplomatic issues added another layer of concern for global markets.
Technical Patterns Signal Potential Breakout
Chart analysis reveals gold testing critical price levels. The metal has been confined within a flag or wedge formation over recent weeks. Friday’s price action pushed above this technical structure, hinting at a possible sustained move higher.
Breaking above $4,200 on a closing basis would represent a breach of the mid-November high point. Such a move could establish momentum toward retesting October’s peak prices. Technical analysts view this level as key resistance that could determine near-term direction.
However, market conditions complicate the interpretation of current price moves. Trading activity remained subdued following Thursday’s Thanksgiving holiday in the United States. Liquidity levels were already reduced before Friday’s technical complications.
A cooling system malfunction at CyrusOne data centers caused disruptions at the Chicago Mercantile Exchange. The issue began at 00:00 ET and affected multiple commodity futures contracts. Gold, silver, platinum, and copper futures all stopped updating at that timestamp.
CME Group acknowledged the technical problem and stated they were working toward resolution. The outage also impacted equity futures markets. Combined with holiday-thinned trading, these factors created unusual market dynamics.
Month-end positioning flows added another variable as traders adjusted portfolios for December. Historical patterns show December can be favorable for gold, though past performance varies.
Gold remained at $4,183.01 per ounce as of 01:21 ET Friday.
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