Gold’s Historic Rally Faces Crucial Test

Gold is poised to deliver its strongest annual performance in more than four decades, yet investors remain on edge. The coming week represents a critical juncture: will the Federal Reserve provide the catalyst for the next leg higher, or trigger a significant market disappointment? Mounting evidence suggests a pivotal moment is at hand.

The primary driver of the current surge is the shifting monetary policy outlook from the U.S. Federal Reserve. Market pricing now indicates nearly a 90% probability of a 25-basis-point interest rate cut at the December 9-10 meeting. This optimism stems from clear signs of a softening U.S. economy, where the manufacturing sector contracted in November for the Read more...