Gold rises on U.S. rate cut bets

Spot gold added 0.2% to $4,310.21 per ounce

Gold rose on Tuesday after a U.S. jobs report showed the unemployment rate rose last month from September, reinforcing bets of rate cuts by the country’s central bank and sending the dollar index lower.

Spot gold added 0.2% to $4,310.21 per ounce, as of 18:48 GMT. U.S. gold futures settled 0.1% lower at $4,332.3.

The U.S. dollar dropped to a two-month low, making dollar-priced bullion more affordable for overseas buyers. Benchmark 10-year U.S. Treasury yields also edged lower.

The data gives the Fed more reason to cut rates and if they cut rates, that’s bullish for gold. That’s the way the market’s interpreting it right now, said RJO Futures senior market strategist Bob Haberkorn.

U.S. job growth rebounded in November, but the unemployment rate was at 4.6% in the backdrop of economic uncertainty stemming from President Donald Trump’s aggressive trade policy.

Last week, the Federal Open Market Committee (FOMC) had announced a quarter-point rate cut, and central bank Chair Jerome Powell’s accompanying comments were perceived as less hawkish than expected.

U.S. rate futures still expect two cuts of 25 basis points each in 2026, pricing in 59 bps of easing next year. Non-yielding gold tends to thrive in a low-interest rate environment.

Investors await November’s Consumer Price Index (CPI), due on Thursday, and Personal Consumption Expenditures index (PCE), due on Friday.

If gold finishes 2025 above $4,400, then it could see $4,859-$5,590 in 2026, said Alex Ebkarian, COO at Allegiance Gold, and added that silver could retest the $50/oz level next year.