old prices rose on Tuesday to their highest level in nearly three weeks, supported by growing expectations of a Federal Reserve rate cut and persistent geopolitical tensions.
Traders now assign roughly a 64% probability for a 25-basis-point rate cut in December, with policymaker Fed Governor Stephen Miran suggesting a larger 50-basis-point move.
At the same time, ongoing conflicts in the Middle East and Eastern Europe continued to bolster safe-haven demand.
However, upside momentum could be capped as optimism surrounding the end of the US government shutdown lifted investor confidence and boosted Treasury yields across maturities. The Senate on Monday approved a bipartisan measure to reopen the government after a long closure, which could restore the flow of key economic data and reduce immediate political uncertainty. Stronger risk appetite could weigh on safe-haven demand, as markets shift attention toward risk assets.
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