Gold prices advanced in Asian trading on Monday, staying close to last week’s all-time highs as optimism over further U.S. interest rate cuts lifted demand for bullion. Spot gold gained 0.3% to $3,697.70 an ounce, while gold futures rose 0.7% to $3,733.10 by 01:33 ET (05:33 GMT). Prices touched a record $3,707.70/oz last week.
The Federal Reserve’s 25 basis-point rate cut last week, aimed at offsetting rising labor market risks, fueled bullish sentiment for gold. The Fed signaled more cuts could follow if job market weakness persists, although policymakers still flagged potential inflationary risks from tariffs. Markets now expect at least another 50 bps of cuts this year, according to CME FedWatch. Lower rates generally support gold, a non-yielding asset, by reducing the opportunity cost of holding it.
A stronger dollar, however, limited gold’s upward momentum, as the greenback recovered from its weakest level in more than three-and-a-half years.
Other precious metals also strengthened. Spot silver rose 1.3% to $43.65/oz, while platinum climbed 0.8% to $1,419.90/oz. Industrial metals saw modest gains, with London copper futures up 0.1% at $10,001.10 a ton and COMEX copper futures rising 0.1% to $4.6315 per pound.
This week’s focus shifts to key U.S. economic data and commentary from Federal Reserve officials. Fed Chair Jerome Powell is scheduled to speak Tuesday, while Friday’s release of the PCE price index—the Fed’s preferred inflation gauge—is expected to show sticky price pressures. Core PCE inflation is forecast to remain above the Fed’s 2% target. Additional data, including September’s PMI readings and a final revision to Q2 GDP, will also guide market expectations for monetary policy.


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