Gold rises ahead of Fed rate cut decision, silver hits $60/oz milestone

Gold gained on Tuesday as traders remained optimistic ahead of the US Federal Reserve’s interest rate decision, while silver rose to hit an unprecedented USD 60 per ounce milestone amid supply constraints.

Spot gold rose 0.6% to USD 4,211.77 per ounce by 03:21 p.m. ET (2021 GMT). US gold futures for February delivery settled 0.4% higher at USD 4,236.2 per ounce.

Spot silver climbed 4.3% to USD 60.74 per ounce, hitting an all-time high.

“People are anticipating that there’s going to be strong industrial demand for silver for years to come, which is why it’s been bid up, the silver price,” said Fawad Razaqzada, market analyst at City Index and FOREX.com, adding that the buying momentum is strong at the moment.

Sectors including solar energy, electric vehicles and their infrastructure, and data centers and artificial intelligence will drive industrial demand higher through 2030, the Silver Institute industry association said in a research report.

Silver prices have also been supported by persistently low supplies and dwindling global inventories, expectations of the Fed easing interest rates, as well as its recent addition to the US critical minerals list.

“Metals are volatile by nature, but unless we fix the deficit, silver only has one way to go, and that is up,” said Maria Smirnova, senior portfolio manager and chief investment officer at Sprott Asset Management.

On the US policy front, the Fed’s two-day meeting ends with a decision on Wednesday. Traders now see an 87.4% chance of a 25-basis-point cut this week.

“The move in gold right now is attributed to the big spike in silver and the high expectations for another quarter-point cut,” said RJO Futures senior market strategist Bob Haberkorn.

Meanwhile, the US Labor Department’s JOLTS report showed job openings rose to 7.67 million in October, beating forecasts of 7.15 million, indicating a strong labor market.

Gold has shrugged off the jobs report, Haberkorn said, adding “we could see silver trade over USD 70 an ounce in the first half of 2026, and gold is on a path towards USD 5,000 an ounce.”

Platinum gained 2.8% to USD 1,688.39/oz, while palladium rose 2.6% to USD 1,503.74/oz.

(Reporting by Sarah Qureshi, Anjana Anil, Anushree Mukherjee, and Anmol Choubey in Bengaluru; Editing by Vijay Kishore, Leroy Leo, Maju Samuel and Krishna Chandra Eluri)