Gold prices surge as U.S. dollar weakens and analysts predict a Christmas rally

Gold prices increased as the U.S. dollar weakened and expectations grew that the U.S. Federal Reserve may pause its interest rate hikes. Spot gold rose 0.4% to $1,999.88 per ounce, on track for a second consecutive weekly gain. The dollar index fell 0.3% and is expected to decline further, potentially leading to a tailwind for gold in 2024. Traders anticipate the Fed to keep rates unchanged in December, but there is a 50% chance of a rate cut as early as May. Lower interest rates reduce the opportunity cost of holding gold. Spot silver and platinum also saw gains.