Gold Prices Hold Near Six-Week High as Rate-Cut Bets Strengthen

Gold prices hovered close to a six-week high on Monday, lifted by a softer U.S. dollar and rising expectations that the Federal Reserve will cut interest rates later this month. Spot gold inched up 0.2% to $4,240.55 per ounce by 02:32 ET (06:32 GMT), after touching an early high of $4,256.20. U.S. gold futures climbed 0.5% to $4,274.55, extending last week’s strong rally that saw bullion surge more than 4%.

The weakening U.S. Dollar Index—trading at a two-week low—enhanced the appeal of gold for international buyers. Risk-off sentiment across global markets further supported demand for safe-haven assets, helping gold maintain its upward momentum. Traders are now pricing in an 87% chance of a 25-basis-point Fed rate cut in December, driven by softer U.S. economic indicators and signs that inflation continues to ease. However, the lack of fresh data following the prolonged government shutdown has kept some investors cautious, especially amid mixed signals from Federal Reserve policymakers.

Political developments also added intrigue to the market. U.S. President Donald Trump said over the weekend that he has already decided whom he will nominate as the next Federal Reserve Chair, though he declined to name the candidate. The comments reignited speculation around potential picks such as Kevin Hassett, former Fed Governor Kevin Warsh, and current Governor Christopher Waller—each of whom could influence the Fed’s policy direction and the pace of future rate cuts.

While gold remained in focus, other metals delivered a mixed performance. Silver futures rose 0.4% to $56.65 per ounce after briefly hitting a new record of $57.815. Platinum futures were up 0.7% at $1,700.60. Copper prices were more subdued, with London Metal Exchange benchmark futures steady at $11,207.20 per ton and U.S. copper futures at $5.30 per pound. Fresh data from China showed factory activity contracting for an eighth consecutive month, adding pressure to industrial metals.