Bullion Market Steadies Close to All-Time Peak

Gold prices were largely unchanged on Monday, consolidating near record highs as traders awaited the outcome of the Federal Reserve’s policy meeting later this week.

At 12:00 GMT, spot gold traded flat at $3,643.30 per ounce, holding near last week’s record high of $3,673.95, while U.S. gold futures slipped 0.2% to $3,680.70/oz.

The metal has advanced nearly 40% year-to-date, supported by persistent safe-haven demand linked to U.S. trade policies and ongoing central bank purchases.

Fed Rate Cut Expectations Dominate Market Sentiment

Investors remained cautious ahead of Wednesday’s Fed announcement, with markets pricing in a 96% chance of a 25 basis-point cut, and a smaller probability of a larger reduction.

Recent revisions to official U.S. labor data reinforced signs of a cooling jobs market, overshadowing slightly stronger consumer price figures. The Fed is widely expected to prioritize signs of labor market weakness over sticky inflation risks.

Gold’s appeal remains strong as lower interest rates reduce the opportunity cost of holding the non-yielding asset while typically weighing on the dollar.

However, latest CFTC data showed managed money net longs in COMEX gold futures fell by 2,445 lots in the week to Sept. 9, snapping a two-week run of increases, suggesting some profit-taking at elevated levels.

Base Metals Mixed; Copper Gains Despite China Slowdown

Other precious metals were muted: silver futures slipped 0.3% to $42.68/oz, while platinum fell 0.5% to $1,405.40/oz.

Copper prices edged higher despite weak Chinese macro data. Benchmark LME copper rose 0.1% to $10,079.60 per ton, while U.S. Comex copper futures gained 0.3% to $4.6650 per pound.

Chinese industrial output grew at the slowest pace in a year in August, while retail sales also disappointed. Rising Shanghai Futures Exchange inventories, with copper stocks climbing over 12,200 tons to 94,054 tons, highlighted subdued demand.