On Thursday, gold prices rose following a cut in interest rates by the U.S. Federal Reserve. Policymakers showed differing opinions on possible rate cuts for the next year. At the same time, silver hit an unprecedented peak. The Federal Reserve’s decision took place amid unclear signals about employment and inflationary pressures. Market participants are attentively observing upcoming economic indicators from the United States. Spot gold rose by 0.3% to $4,242.39 per ounce as of 0040. U.S. gold futures for February delivery rose by 1.1%, hitting $4,271.30 per ounce.

The Federal Reserve made a 25-basis-point cut in interest rates after a divided vote, while suggesting that additional reductions in borrowing costs are unlikely as it looks for clearer signs of a weakening labor market and inflation that “remains somewhat elevated”. Most U.S. central bankers expect that lowering short-term interest rates will be necessary in the next year. In a significant shift from the usual agreement, six policymakers voiced their dissent regarding the quarter-point cut implemented on Wednesday. Meanwhile, Fed Chair Jerome Powell stated that the central bank’s rate policy is well-equipped to handle future developments in the U.S. economy, while avoiding any hints about the possibility of another cut in the near term. Assets such as gold typically show robust performance in settings marked by low interest rates.

Next week, the U.S. will release job and inflation data for November, along with a detailed report on economic growth for the third quarter. SPDR Gold Trust, the leading gold-backed exchange-traded fund worldwide, announced a decrease in its holdings of 0.11%, falling to 1,046.82 tonnes on Wednesday from 1,047.97 tonnes on Tuesday. Meanwhile, spot silver rose by 0.9% to $62.31 per ounce after hitting a record high of $62.67.

So far this year, prices have surged by an impressive 113%, fueled by rising industrial demand, shrinking inventories, and the metal’s addition to the U.S. critical minerals list. Elsewhere, platinum rose by 0.2% to $1,658.85, while palladium fell by 0.3% to $1,471.75.