By: Economy Middle east

Gold prices rose on Monday, reaching a six-week high as investors looked ahead to a possible U.S. interest rate cut later this month. Meanwhile, silver climbed to a fresh record high.

In the UAE, gold rates witnessed a marginal decline as the country celebrated the UAE National Day holiday, with 24-carat gold and 22-carat gold falling AED0.5 to AED508 and AED470.25, respectively.

Additionally, 21-carat gold and 18-carat gold dipped AED0.5 to AED451 and AED386.5, respectively.

Meanwhile, 14-carat gold reached AED301.5.

Globally, spot gold gained 0.47 percent to $4,239.02 per ounce as of 6:52 GMT, after touching its strongest level since October 21, while U.S. gold futures for February delivery edged up 0.28 percent to $4,266.90.

Silver posts fresh record high

As gold prices rose, silver jumped 0.38 percent to $56.94 per ounce after hitting an all-time high of $57.86 earlier in the session.

“Gold, silver and platinum once again outperformed. Gold rose around 2.6 percent last week as softer yields and a weaker dollar aligned with strong longer-term allocation flows from central banks and institutional investors. Silver and platinum jumped more than 8 percent, extending what has been an exceptional year for these two metals, both outperforming gold despite the lack of tailwind from central bank demand. Overall, the BCOM precious metals index, which only includes gold and silver, has returned almost 64 percent in 2025,” said Ole Hansen, head of commodity strategy, Saxo Bank.

The U.S. dollar slipped to a two-week low, boosting demand for dollar-denominated gold by making it more affordable for investors using other currencies. The U.S. dollar index was last trading at 99.50.

“Gold continues to behave like a stabilizing asset as macro uncertainty and debt concerns rise. The combination of lower real yields, a softer dollar and the broader “debasement hedge” angle added support. Pullbacks remain shallow, with long-term investors and central banks using dips as entry points,” added Hansen.

Investors boost expectations for December rate cut

Gold prices rose after recent dovish comments from Federal Reserve Governor Christopher Waller and New York Fed President John Williams, combined with weaker U.S. economic data, strengthened expectations that the Fed will ease policy in December. Traders are now pricing an 87 percent probability of a rate cut this month, according to CME’s FedWatch tool.

White House economic adviser Kevin Hassett, considered a leading candidate for Federal Reserve Chair, said on Sunday he would be willing to take the role if appointed by President Donald Trump. Hassett, like Trump, favors lower interest rates.

“The prospect of a Fed leadership shift matters for commodities, not only due to the prospect of rate cuts lowering the opportunity costs for holding non-yielding assets, while potentially softening the dollar, but also some concerns that the Federal Reserve’s independence from political interference could be challenged,” added Hansen.

Investors are now looking ahead to Friday’s release of core U.S. Personal Consumption Expenditures data for further guidance on the Fed’s policy direction. Lower borrowing costs typically provide support for non-yielding assets such as gold.

Other precious metals

As gold prices hit a 6-week high and silver set a new record price, the precious metals market was largely up on Monday. Platinum surged 0.70 percent to $1,684.20 and palladium gained 0.44 percent to $1,456.80.