Gold saw a minor drop in early Asian trading on Monday, pulling back from a nearly three-week peak, as investors cashed in on profits amid increasing anticipation of a U.S. interest rate cut later this month. At the same time, silver hit an all-time high. Spot gold saw a decrease of 0.2%, now at $4,221.68 per ounce as of 0109, after hitting its highest level since November 13 on Friday. Gold futures in the U.S. for December delivery rose by 0.2%, hitting a price of $4,261.60 per ounce. Silver rose by 2.2%, hitting a new high of $57.59 per ounce.

U.S. rate futures show an 87% likelihood of a rate cut happening in December, according to the reports. Recent comments from U.S. Federal Reserve Governor Christopher Waller and New York Fed President John Williams, combined with weaker economic data after the recent government shutdown, have increased expectations that the central bank will make rate cuts this month.

Meanwhile, White House economic adviser Kevin Hassett, who has emerged as a frontrunner for the post of Fed Chair, stated on Sunday that he would be willing to serve as the next chairman of the U.S. central bank if selected by President Donald Trump. Like Trump, Hassett believes that interest rates ought to be lower. Gold, known for not generating interest, often shows robust performance in settings marked by low interest rates.

Investors are looking forward to the upcoming U.S. manufacturing and private payroll data scheduled for release later this week, as they aim to evaluate the chances of a rate cut at the central bank’s meeting on December 10. The U.S. dollar stayed near its lowest level since November 17, leading to a drop in the price of gold in dollars for those holding other currencies. In other markets, platinum fell by 0.2% to $1,669.15, while palladium rose by 2.3% to $1,483.51.