By: Reuters

Gold prices climbed on Monday to their highest level in six weeks, driven by investor expectations of a possible U.S. interest rate cut later this month and shifts in Federal Reserve leadership, while silver surged to a record high.
Spot gold was up 0.3% at $4,241.21 per ounce as of 0855 GMT, after hitting its highest since October 21. U.S. gold futures for December delivery gained 0.5% to $4,275.40.

Get the latest news from India and how it matters to the world with the Reuters India File newsletter. 

Silver was up 1.3% to $57.12 per ounce after hitting an all-time high of $57.86 earlier.
"Market participants are now starting to price in again a rate cut for the Fed in December, as well the expectation is the new FOMC chairman will be a dove... that is supporting investment demand for gold," said UBS analyst Giovanni Staunovo.

"Silver benefits from the same factor as gold, plus the expectation of further improving industrial demand next year."
Traders have increased bets over the last few weeks for interest rate cuts in December following softer U.S. data, and dovish comments by several policymakers, including Federal Reserve Governor Christopher Waller and New York Fed President John Williams.

Markets are now pricing an 88% chance of a rate cut, according to the CME's FedWatch tool. FEDWATCH
Lower borrowing costs tend to support non-yielding bullion.

White House economic adviser Kevin Hassett said on Sunday he would be happy to serve as the next chairman of the Fed if chosen. Like Trump, Hassett believes rates should be lower.

Trump is likely to announce a new chair before Christmas, said Treasury Secretary Scott Bessent.

Markets now await the November ADP employment report on Wednesday and core U.S. Personal Consumption Expenditures September figures on Friday for further cues on the Fed's policy path.

Meanwhile, the U.S. dollar fell to a two-week low, making greenback-priced bullion cheaper for holders of other currencies.

"We expect gold to rise to $4,500/oz next year (and) silver to rise to $60/oz next year," said Staunovo.
The S&P 500 up around half a percent, and the Nasdaq adding about two-thirds of a percent.

Among other precious metals, platinum rose 0.5% to $1,680.75, while palladium gained 0.2% to $1,452.97.