Gold continues to rise, reaching a 3-week high, supported by expectations of interest rate cuts.

Arabian Sea Newspaper - Special

Arab Sea - Follow-ups: Gold continued to make strong gains today, Tuesday, recording its highest level in nearly three weeks, amid growing expectations that the US Federal Reserve will cut interest rates again next December. Spot gold rose 0.4% to $4,131.83 an ounce by 00:53 GMT, its highest level since October 24. US gold futures for December delivery also rose 0.4% to $4,138.70 an ounce. Gold is seen as a safe haven in times of economic uncertainty, and demand for it increases as interest rates fall, reducing the opportunity cost of holding the non-yielding metal. Data last week showed the US economy lost jobs in October as employment fell in the government and retail sectors. A survey on Friday showed that US consumer confidence fell to its lowest level in three and a half years in early November, amid concerns about the repercussions of the longest government shutdown in US history. The CME Group's FedWatch tool shows that traders now expect a 64 percent chance that the US central bank will cut interest rates by 25 basis points next month. Federal Reserve Board member Stephen Miran said on Monday that a 50 basis point cut would be appropriate in December, citing falling inflation and rising unemployment. Gold, which does not yield a return, usually benefits from a low interest rate environment and economic uncertainty. The US Senate on Monday approved a settlement that would end the longest government shutdown in US history, ending a weeks-long stalemate that disrupted food aid to millions of citizens, left hundreds of thousands of government employees unpaid, and disrupted air traffic.