Gold Rebounds After Two-Day Slump as Rate-Cut Expectations Wane
November 16, 2025 at 11:22 PM UTC
Updated on
November 17, 2025 at 12:08 AM UTC
Gold made a modest recovery on Monday, ending a two-day slide that had been driven by dwindling expectations of a US Federal Reserve interest rate cut next month.
The precious metal was trading near $4,100 per ounce, bouncing back slightly after shedding more than 2% in the previous session. The drop had come as investors recalibrated their outlook, following signals from Fed officials who appeared hesitant to lower borrowing costs in the near term. Lower interest rates often boost the appeal of gold because it does not generate any yield, making it more attractive when returns from other assets like bonds decline.
But here's where it gets controversial: while many investors see the Fed's caution as a reason for optimism in gold, others argue that this hesitation signals a stronger US economy, which could eventually weigh on bullion prices. This tug-of-war between economic optimism and safe-haven demand is creating a lot of debate in financial circles. Are gold bulls underestimating the resilience of the US economy, or is this rebound a smart opportunity to buy on weakness? Share your thoughts in the comments below!
