Gold prices extended their rally on Monday, climbing to the highest level since April as expectations for a Federal Reserve rate cut in September gained momentum, while a softer dollar added further support.
As of 6:06 a.m. ET (10:06 GMT), spot gold rose 0.6% to $3,468.85 per ounce, while December futures gained 0.7% to $3,539.62. The metal has now advanced for five straight sessions, with August gains nearing 5%. Silver also surged, hitting a 14-year high.
Market sentiment was boosted by last week’s U.S. inflation data, which showed no major surprises. Traders now see nearly a 90% probability of a 25-basis-point cut in September, highlighting expectations that the Fed will prioritize support for a cooling labor market.
Lower borrowing costs typically reduce the opportunity cost of holding non-yielding assets, enhancing gold’s appeal. Investors are now awaiting Friday’s U.S. payrolls report, which could provide further direction for Fed policy.
Political and trade uncertainties also underpinned safe-haven demand. A U.S. appeals court recently struck down parts of Trump-era tariffs on Chinese imports, though the duties remain in place until October pending a Supreme Court appeal. Meanwhile, Trump’s attempt to dismiss Fed Governor Lisa Cook on alleged misconduct has heightened concerns over political interference in monetary policy.
Elsewhere, platinum futures rose 2.4% to $1,403.30 per ounce, silver futures gained 1.8% to $41.458, and copper advanced sharply on upbeat Chinese factory data, marking the fastest pace of growth in five months.
