Gold prices rose for a third day after the US Federal Reserve delivered a widely expected interest-rate cut on Wednesday, while silver climbed to a record high.
Bullion advanced as much as 0.5% to near $4,248 an ounce, with US Treasury yields and the dollar declining after the Fed’s final meeting of this year. Gold prices rose 0.2% to $4,238.23 per ounce as of 9:50 am in Singapore. Silver prices climbed as much as 1.5% to a record $62.7249. Platinum and palladium gained. The Bloomberg Dollar Spot Index was down 0.1%.
The US central bank lowered rates for a third straight meeting, keeping its outlook for just one more cut in 2026, but subtly changing the wording of its statement to hint at greater uncertainty around future reductions.
The Federal Open Market Committee voted 9-3 to cut the federal funds rate by a quarter point to a range of 3.5%-3.75%. It was the first time since 2019 that three Fed officials voted against a policy decision, with dissents on both ends of the spectrum.
A dovish Fed is positive for precious metals, which typically benefit from low rates as they don’t pay interest.
“It’s a relief, not euphoria,” said Charu Chanana, the chief investment strategist at Saxo Markets in Singapore. “The 25-basis-point cut and softer yields were largely priced in, and the split vote keeps traders from chasing it higher on the day.”
Gold prices have surged more than 60% this year and silver has more than doubled, with both metals on track for their best annual performances since 1979. The scorching rallies have been underpinned by elevated central-bank buying and a retreat by investors from sovereign bonds. Holdings in Gold ETFs have risen every month this year except May, according to the World Gold Council.
“Widening fiscal deficits, sticky geopolitical risk and ongoing de-dollarisation and central-bank buying all argue that this gold bull market may still have room to run,” Chanana said.
On Wednesday, the US Fed said it would start buying $40 billion of US Treasury bills per month starting 12 December as it seeks to rebuild reserves, a move that will increase overall liquidity and are likely buoy gold.
Reinforcing sentiment that the next Fed chair will be more dovish, President Donald Trump repeated his view that rates should be much lower as the candidate search nears its end.