Gold Prices Stay Near Record Highs as Investors Bet on Further Fed Easing

Gold prices gained modestly in Asian trading on Monday, holding close to last week’s all-time peaks as expectations of further U.S. interest rate cuts supported the bullion market. Spot gold rose 0.3% to $3,697.70 an ounce by 01:33 ET (05:33 GMT), while U.S. gold futures climbed 0.7% to $3,733.10 per ounce. Spot prices had reached a record $3,707.70 last week before easing slightly.

The Federal Reserve’s move to lower its benchmark rate by 25 basis points last week has strengthened the outlook for gold, with policymakers citing rising risks to the labor market as the main reason for easing. The Fed projected two more cuts this year, though Chair Jerome Powell emphasized caution, noting persistent inflation risks from higher trade tariffs. Markets remain confident that borrowing costs will decline by at least 50 basis points in 2025, according to CME FedWatch.

Gold, which has already risen nearly 40% this year, continues to benefit from the lower opportunity cost of holding non-yielding assets, alongside geopolitical uncertainty and strong central bank purchases. The U.S. dollar’s rebound from multi-year lows has limited bullion’s upside in recent sessions, but traders still see scope for further gains.

Other precious and industrial metals also advanced on Monday. Spot platinum rose 0.8% to $1,419.90 an ounce, while silver added 1.3% to $43.65. Copper markets posted small gains, with London futures up 0.1% at $10,001.10 a ton and COMEX contracts rising 0.1% to $4.6315 per pound.

Investor attention now turns to U.S. economic data due this week, including the Fed’s preferred inflation gauge, the PCE price index, which is expected to show persistent inflation above the 2% target. Powell’s scheduled remarks on Tuesday, along with PMI data and the final Q2 GDP reading, will also be closely watched for clues on the pace of future monetary easing.