Gold is expected to see a weekly increase, and traders are hopeful for further interest rate cuts by the Federal Reserve.

Gold prices are expected to record a weekly increase, as the Federal Reserve implemented the much-anticipated 25 basis point rate cut this week, while investors are hoping for further policy relaxation next year. New York futures prices rose 0.2% in early trading to $4,322.20 per ounce, up 1.9% for the week. At the same time, silver futures prices hit a record high of $64 per ounce. Analysts at Sukedon Financial stated, "While silver has attracted speculative momentum amid claims of supply shortages, the price of gold is still closely linked to broader policy prospects and real interest rates. We expect gold to continue to act as a more reliable macro sentiment indicator, unless the US dollar significantly weakens, its recent upside potential may be limited."