Gold Rebounds on Fed Cut Expectations; Silver Hits Record High

AsianForexHub Market Pulse

• Gold rebounds to $4,222 as Fed cut odds rise to 89%
• Silver prints fresh record at $58.94 amid physical shortages
• U.S. ADP and PCE data to shape policy outlook
• Central banks boost gold purchases to 53 tons in October
• Trump to announce Powell’s successor early next year

Gold regained upward momentum on Wednesday as investors maintained confidence in a Federal Reserve rate cut next week, with a busy U.S. data calendar expected to determine the policy outlook. Silver, meanwhile, surged to a fresh record high as physical shortages tightened global supply.

Spot gold rose 0.4% to $4,222.22/oz as of 0506 GMT, recovering after a drop of more than 1% in the previous session. U.S. gold futures for December delivery gained 0.8% to $4,252.90/oz.

Brian Lan of GoldSilver Central said the recent decline reflected “normal profit-taking” amid flows shifting temporarily into crypto and equities, adding that expectations of a Fed rate cut continue to lend support.

U.S. rate futures now price an 89% probability of a policy cut next week, rising from 85% a week earlier, according to the CME FedWatch tool.

Track real-time gold & silver volatility as Fed expectations shift.

Recent U.S. releases showing gradual economic moderation have strengthened expectations of a Fed cut at the December 9–10 meeting, with major brokerages turning more confident in policy easing.

Gold — a non-yielding asset — typically benefits during low-interest-rate cycles. Investors are now eyeing key data this week, including the November ADP employment report and the delayed September PCE Index, the Fed’s preferred inflation measure.

Adding to the macro backdrop, U.S. President Donald Trump said he plans to announce his pick to succeed Jerome Powell as Fed Chair early next year.

Central bank demand remains robust. The World Gold Council reported 53 tons of gold purchases in October, up 36% month-on-month — the largest monthly net demand of 2025 so far.

Silver climbed 0.4% to $58.73/oz, after hitting a new record high of $58.94 earlier.

Kunal Shah of Nirmal Bang Commodities said global silver fundamentals remain “very bullish” as inventories on COMEX and in China continue to decline.

Analyze how Fed cuts may impact gold–silver spreads.