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Gold prices advanced in Asian trading on Monday, extending gains after reaching a near two-month high in the previous session, as a softer U.S. dollar and declining Treasury yields continued to support precious metals following less hawkish signals from the Federal Reserve.
Spot gold climbed 1% to $4,343.62 an ounce by 01:00 ET (06:00 GMT), while March gold futures rose 1.1% to $4,375.80/oz. The move built on strong momentum from last week, when metals rallied sharply in response to the Fed’s policy update.
Silver remained close to record highs after last week’s surge, with spot prices up 1.6% at $62.99/oz. Platinum also outperformed, rising 1.8% to $1,781.09/oz, as gains spread across the broader metals complex.
Dovish Fed Outlook Lifts Metals
The latest leg higher in gold and silver followed dovish signals from the Federal Reserve, which cut interest rates last week and announced plans to begin purchasing short-dated U.S. Treasuries at a pace of $40 billion per month starting in December. The move signaled a willingness to further ease financial conditions and injected fresh liquidity into markets.
As a result, the U.S. dollar and Treasury yields weakened, improving the appeal of non-yielding assets such as gold. The Fed’s stance also revived safe-haven demand, with investors interpreting the asset-buying announcement as a sign of increased caution over the U.S. economic outlook.
Key U.S. Data in Focus
Attention now turns to two critical U.S. economic releases this week: the November nonfarm payrolls report and the consumer price index (CPI). Both indicators are expected to play a central role in shaping expectations for the Fed’s next policy moves.
The payrolls data—delayed due to the prolonged government shutdown in October and November—will be closely scrutinized for signs of further cooling in labor market conditions. CPI figures will offer fresh insight into inflation trends, the other key determinant guiding the Fed’s interest-rate decisions.
With dollar weakness persisting and monetary conditions expected to remain accommodative, gold and silver continue to find support. However, incoming U.S. data could prove pivotal in determining whether the current rally has further room to run.
