Gold and Silver Advance as Softening Dollar and Rate-Cut Expectations Fuel Rally

Precious metals re-entered positive territory as both gold and silver recorded solid gains, recovering from recent consolidative pressure under the influence of a weakening U.S. dollar and steady safe-haven buying.

Data from the COMEX exchange and market monitors at Trading Economics show spot gold rising 0.65% to $2,425.40 per troy ounce, while December futures advanced to $2,468.10 per ounce. Silver outperformed the yellow metal in percentage terms, gaining 1.25% to reach $28.73 per troy ounce.

The upward momentum stems from several converging macroeconomic drivers. Softer U.S. labor market metrics have reinforced market expectations that the Federal Reserve will initiate a rate-cut cycle at its upcoming policy meeting, while falling 10-year U.S. Treasury yields have reduced the opportunity cost of holding non-yielding bullion. Meanwhile, ongoing geopolitical friction in the Middle East and a recalibration of COMEX margin requirements have restored liquidity to precious metals contracts, stabilizing price action and setting the stage for further gains.

N.Tebrizli