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Gold hovered near a six-week peak on Monday, supported by a softer U.S. dollar and firm expectations that the Federal Reserve will cut interest rates later this month.
By 02:32 ET (06:32 GMT), spot gold was up 0.2% at $4,240.55 an ounce, after briefly touching $4,256.20, its highest level since mid-October. February gold futures rose 0.5% to $4,274.55.
Bullion gained more than 4% last week, extending its strong upward momentum.
Weaker Dollar, Fed Cut Bets Lift Gold
The U.S. Dollar Index slipped to a two-week low, making gold more appealing for overseas buyers. Broader risk-off sentiment across global markets also helped sustain safe-haven demand.
Markets now price an 87% probability of a 25-basis-point Fed cut at the December 9–10 meeting, driven by a series of softer U.S. economic indicators and signs that inflation pressures are cooling.
However, the absence of fresh official data—owing to the prolonged government shutdown—has left some investors cautious, with mixed comments from Fed officials adding to policy uncertainty.
Fed Chair Speculation Adds Intrigue
Political developments added another layer of momentum for gold.
U.S. President Donald Trump said Sunday he already knows whom he will nominate as the next Federal Reserve Chair, though he stopped short of naming the candidate.
Speculation has resurfaced around several contenders, including:
- Kevin Hassett
- Former Fed Governor Kevin Warsh
- Current Governor Christopher Waller
The identity of the next chair will likely shape expectations around the pace and depth of rate cuts over the coming year—an important driver for gold.
With uncertainty high across monetary and political fronts, gold’s near-term momentum remains intact as investors seek protection from volatility across both currency and equity markets.
Silver Hits Record High; Copper Holds Steady
Precious and industrial metals posted a mixed performance:
- Silver futures rose 0.4% to $56.65/oz, after hitting a record high of $57.815
- Platinum futures climbed 0.7% to $1,700.60/oz
- LME copper was steady at $11,207.20/ton
- U.S. copper futures were flat at $5.30/lb
Fresh data from China showed factory activity contracting for an eighth straight month, with both official and private PMIs signaling ongoing weakness in the world’s biggest metals consumer.
