SINGAPORE, Nov 28 (Reuters): Spot gold rose 1 per cent to a two-week high on Friday, as expectations that the Federal Reserve will trim interest rates next month lifted demand for the non-yielding asset, while silver hit a fresh record high.
Spot gold rose 0.9 per cent to $4,192.78 per ounce by 10:09 a.m. ET (1510 GMT), its highest since November 14, and was set for a 2.9 per cent weekly gain. Bullion, set to register a 4.6 per cent rise this month, is on track for its fourth consecutive monthly gain.
Silver climbed to a fresh record high of $55.33 per ounce, up 3.5 per cent for the session and 13 per cent for the month.
Futures trading resumed around 1330 GMT, after an hours-long outage at CME Group halted trade on its currency platform and in futures spanning foreign exchange, commodities, Treasuries and stocks. US gold futures for February delivery rose 0.61 per cent to $4,227.60 per ounce.
"The expectation is that we're going to continue to have a slower economy going into 2026, and the Federal Reserve is very likely to cut rates, which is getting some investors back" into gold, said Bart Melek, head of commodity strategies at TD Securities.
Gold tends to do well in low-interest-rate environments.
Recent dovish remarks from Fed Governor Christopher Waller and New York Fed President John Williams, combined with softer US economic data following the government shutdown, have strengthened expectations that the central bank will cut interest rates next month. Traders see an 89 per cent chance of a rate cut in December, up from 50 per cent last week.
Meanwhile, "the technical charts for silver have turned more bullish in the past week or so, and that's inviting the chart-based speculators to the long side of the silver market," said Jim Wyckoff.
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