PRECIOUS-Gold poised for fourth monthly gain on Fed rate cut optimism

By Noel John

Nov 28 (Reuters) - Gold prices rose on Friday to a two-week high and were on track for a fourth straight monthly rise on optimism over a possible U.S. Federal Reserve rate cut in December.

An outage at CME Group CME.O stopped trade on its currency platform and in futures spanning foreign exchange, commodities, Treasuries and stocks. U.S. gold futures GCcv1 for December delivery were at $4,221.30 per ounce ahead of the outage.

Spot gold XAU= was up 0.4% at $4,171.76 per ounce by 1314 GMT, its highest since November 14, and was set for a 2.6% weekly gain. Bullion is set to register a 4.2% rise this month.

"The underlying sentiment (in gold) remains very positive... There are concerns about global debt, tariffs and sanctions," said independent analyst Ross Norman. Ongoing central bank buying has also been driving gold's rally this year, he added.

Gold, a non-yielding asset, tends to do well in low interest-rate environments. Traders are now pricing in an 85% chance of a rate cut in December, up from 50% a week earlier. FEDWATCH

Comments from heavyweights like Fed Governor Christopher Waller and New York Fed President John Williams, as well as the release of soft U.S. economic data after the government shutdown, have reinforced expectations that the central bank will trim interest rates next month.

The U.S. dollar was headed for its biggest weekly drop since late July. A weaker greenback makes dollar-priced gold more attractive for buyers using other currencies. USD/

Elsewhere, UBS raised its silver price forecasts by between $5 and $8 an ounce, and said it expects the metal to trade at $60 an ounce in 2026.

Spot silver XAG= rose 0.9% to $53.90 per ounce and platinum XPT= gained 1.2% to $1,627.59. For the week, silver was up 7.8% and platinum up 7.7%, respectively.

Palladium XPD= gained 4% to $1,497.00 and was set for a 8.9% weekly gain.