By: Economy Middle east

Gold prices rose on Friday and were on track for a fourth consecutive monthly gain, supported by growing confidence that the U.S. Federal Reserve will cut interest rates in December.

In the UAE, gold rates marked notable gains, with 24-carat gold rising AED4.25 to AED504.75 and 22-carat gold gaining AED3.75 to AED467.25. Additionally, 21-carat gold rose AED3.5 to AED448, and 18-carat gold edged up AED3 to AED384.

Globally, spot gold gained 0.41 percent to $4,173.39 per ounce by 5:32 GMT, after reaching its highest level since November 14 earlier in the session, and was heading for a 3 percent weekly advance. Bullion is set to finish the month up 3.9 percent.

Meanwhile, U.S. December gold futures added 0.53 percent to $4,187.40 per ounce.

Fed rate cut bets rise

Gold prices rose on Friday amid investor optimism surrounding a Fed rate cut in December. Several Federal Reserve officials, including New York Fed President John Williams and Governor Christopher Waller, have signaled that a December rate cut could be justified, citing labor market softness that is exerting downward pressure on Treasury yields.

In addition, a mixed batch of U.S. economic data released this week did little to shift market expectations, helping lift non-yielding gold prices to a two-week high during Friday’s Asian session.

Traders are currently pricing an 87 percent chance of a December rate cut, up from 85 percent in the previous session, according to the CME’s FedWatch tool. Lower interest rates typically enhance the appeal of non-yielding assets such as gold, supporting their prices.

The Fed officials’ position, however, stood in contrast to the views of several regional Fed presidents who argued that policymakers should hold off on further easing until inflation demonstrates clearer progress toward the 2 percent goal. At the same time, Kevin Hassett, widely viewed as a leading candidate to succeed Jerome Powell as Fed Chair, has echoed President Donald Trump’s view that interest rates should be lower.

Hassett’s appointment as Fed Chair would likely support President Donald Trump’s push for significantly lower interest rates. This prospect helped offset a mild uptick in the U.S. dollar and provided an additional boost for gold prices.

“The speculation surrounding the possible selection of Kevin Hassett as the new Fed chair is ramping up. This has added to this bullish outlook, given his perceived dovish stance towards interest rates, as well as strengthening market expectations that 2026 could see another accommodative policy,” said Vijay Valecha, chief investment officer, Century Financial.

Investors watch Russia-Ukraine peace developments

On the geopolitical front, Russian President Vladimir Putin said a revised U.S. proposal could serve as the basis for a future agreement with Ukraine, but only if Ukrainian forces withdraw from territories Moscow claims as its own. He warned that Russia would seize the areas by force if Kyiv refuses. Ukraine, for its part, has repeatedly insisted it will not cede any land.

Kremlin spokesman Dmitry Peskov added that a deal remains distant and reiterated that Moscow will not make major concessions. U.S. President Donald Trump, however, maintained that an agreement is “very close.” The lingering geopolitical uncertainty continues to support gold prices.

Other precious metals

As gold prices rose, the precious metals market witnessed mixed movement on Friday. Spot silver gained 0.95 percent to $53.95, while platinum surged 1.80 percent to $1,637.03. However, palladium dipped 0.68 percent to $1,428.74.