Spot gold was up 0.8% at $4,162.99 per ounce after hitting its highest since November 14 earlier in the session

Gold prices hovered near an over one-week high on Wednesday.

Spot gold was up 0.8% at $4,162.99 per ounce at 18:55 GMT, after hitting its highest since November 14 earlier in the session.

The focus has shifted away from the dollar and towards a decrease in interest rates in December, said Marex analyst Edward Meir, noting gold’s rise despite the dollar index being steady.

Rate cut bets “are helping gold a bit, as is the talk that they might nominate a Fed chairman soon and the front runner is Kevin Hassett from the Economic Advisory Committee of the president.”

Hassett, like U.S. President Donald Trump, has said interest rates should be lower than they are under central bank Chair Jerome Powell. Gold, a non-yielding asset which thrives in a low-interest rate environment, received an additional boost from this news.

Traders see an 85% possibility of a central bank rate cut next month, compared to 30% a week ago, according to the CME FedWatch tool.

Meanwhile, the number of Americans filing new applications for unemployment benefits fell last week, pointing to still-low layoffs, though the labor market is struggling to generate enough jobs for those out of work amid lingering economic uncertainty.

U.S. consumer confidence also weakened in November as households grew more concerned about jobs and their financial outlook. The data releases followed a series of recent dovish comments from central bank policymakers.

The outlook for gold remains positive, with most research banks seeing gold above $4,000 per ounce in 2026. Deutsche Bank has raised its 2026 gold forecast to $4,450 an ounce from $4,000, citing stabilising investor flows and persistent central bank demand.