Gold Price Prediction Before December Rate Cut: Will Bullish Momentum Continue?

2025-11-25

Gold is back in the spotlight as traders prepare for the Federal Reserve’s highly anticipated December meeting. With expectations of an interest rate cut rising sharply, gold prices have started gaining strong upward momentum again.

In this article, we take a closer look at gold price prediction before the December rate cut, breaking down the key market drivers, geopolitical influences, and what traders should watch in the coming weeks.

Gold Price Surge as December Rate Cut

Gold Price Prediction Before December Rate Cut.webp

Gold prices rallied strongly on November 24, with COMEX gold closing at $4133.8 per ounce, marking a 1.33% daily increase. In China, SHFE gold futures also saw a solid uptick, rising 0.54% to 934.74 yuan per gram.

This sudden bullish move came right after a shift in tone from the Federal Reserve. As financial market instability becomes more obvious, Fed officials are leaning toward easing measures, something gold investors love to see.

December Rate Cut Expectations are Rising

The latest push came from San Francisco Fed President Mary Daly, who expressed clear support for a December rate cut, arguing:

- The job market is fragile.

- A sudden downturn poses more risks than rising inflation.

- Rate cuts could help stabilize economic pressures.

Her comments echoed earlier statements from the New York Fed President, strengthening the market’s belief that a 25-basis-point rate cut is likely next month.

A weaker U.S. dollar, stabilizing U.S. stock market, and improving liquidity expectations all contributed to the current rally in gold.

Geopolitical Tensions Still Support Gold

Beyond macroeconomics, geopolitics continues to influence gold demand. The U.S. and Russia recently proposed a 28-point peace agreement draft, but differences remain large:

- Ukraine says it has finalized a new draft with the U.S.

- Russia believes the European proposal is ineffective.

- The U.S. proposal may serve as a baseline for future talks.

While easing tensions normally pull gold prices down, the uncertainty around negotiations keeps support intact. The combination of geopolitical risk and economic instability continues to make gold a preferred safe-haven asset.

Gold Price Prediction Before December Rate Cut

Based on current data, gold appears to be entering a high-level consolidation phase. The strong upward rally may cool off as the following factors balance out.

Here’s the gold price prediction before the December rate cut:

Bullish Factors

- Rising probability of a December interest rate cut.

- Dovish stance from multiple Fed officials.

- Weaker U.S. dollar.

- Strong investor demand for safe-haven assets.

Bearish Factors

- Potential easing of Russia–Ukraine tensions.

- The Fed’s possible hesitation to commit to long-term rate cuts.

- Reduced fear in global markets.

- Investors taking profit after recent price spikes.

Overall, gold may trade sideways at elevated levels until the Federal Reserve officially announces its decision on December 9–10.

Gold Trading Strategy

Analysts remain cautious due to the high uncertainty surrounding gold’s next move.

Here are suggested approaches for traders:

- Stay neutral if you’re unsure, volatility may continue.

- Consider buying dips for long-term portfolios.

- Avoid chasing sudden spikes since gold might consolidate.

- Monitor Fed communication closely leading into the December meeting.

From an asset allocation standpoint, accumulating small positions on price pullbacks is seen as a safer approach.

Conclusion

Rising expectations of a December rate cut have given gold markets a fresh boost. With Fed officials showing strong support for easing policies and the U.S. dollar losing strength, gold is well-positioned to maintain its bullish momentum, at least in the short term.

However, geopolitical developments and uncertainty over the sustainability of policy cuts could keep prices in a consolidation range.

For now, the gold price prediction before the December rate cut suggests that while the upside remains attractive, traders should prepare for potential volatility and avoid overly aggressive positions.

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FAQ

Why did gold prices rise this week?

Gold surged because expectations of a December rate cut increased after dovish comments from multiple Federal Reserve officials.

Will gold keep rising before the December meeting?

Gold may remain strong but could enter a consolidation phase until the Fed confirms its policy direction.

Is now a good time to buy gold?

Analysts suggest buying on dips rather than chasing sudden price spikes due to short-term uncertainty.

How do rate cuts affect gold prices?

Rate cuts usually weaken the dollar and reduce yields, making gold more attractive as a non-yielding safe-haven asset.

Could geopolitical tensions push gold higher?

Yes. Even with potential peace negotiations underway, uncertainty around global conflicts continues to support gold demand.

Gold

Disclaimer: The content of this article does not constitute financial or investment advice.

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