Gold Prices Rise Amid Fed Uncertainty and Japan Fiscal Concerns
Gold prices climbed 0.6-0.7% to $4,092 an ounce, snapping a three-day losing streak as investors sought safe-haven assets. The rally comes amid fading expectations for a Federal Reserve rate cut in December, with odds dropping to 42.4% from 62.4% last week.
Japanese government bond yields surged to multi-decade highs following concerns over Prime Minister Takaichi's proposed 25 trillion yen ($163 billion) spending package. The fiscal plan exceeds initial market expectations and raises questions about funding mechanisms.
According to a Bank of America survey, global investors now view Gold as having the second-best return potential for 2026, trailing only the Japanese yen. The precious metal has gained approximately 55% in 2025, on track for its best year since 1979.
