Gold prices climbed again on Monday, marking a fifth consecutive session of gains and hovering near a two-month high, as a softer U.S. dollar supported precious metals following more accommodative signals from the Federal Reserve.
By 08:10 ET (13:10 GMT), spot gold was up 0.8% at $4,338.56 per ounce, while March gold futures advanced 1% to $4,370.45 an ounce.
Gold supported by dovish Fed tone
The yellow metal has continued to build on last week’s rally, helped by declining Treasury yields and a weaker dollar. The move followed the Federal Reserve’s recent policy decision, which included an interest rate cut and an announcement that it will begin purchasing short-term U.S. Treasuries starting in December at a pace of $40 billion per month.
These bond-buying plans signal a more accommodative monetary stance, particularly as the additional liquidity injections are expected to further ease financial conditions. Such an environment typically favors gold, which tends to perform well when interest rates are lower and liquidity is abundant.
At the same time, the Fed’s actions have also boosted safe-haven demand for gold, as investors weigh concerns about the underlying strength of the U.S. economy implied by the renewed stimulus measures.
U.S. jobs and inflation data awaited
Market attention this week is firmly on key U.S. economic releases, including the November nonfarm payrolls report due Tuesday and consumer price inflation data scheduled for Thursday.
The payrolls report, normally released on the first Friday of each month, was delayed after an extended government shutdown disrupted data publication in October and November. As a result, this week’s figures will be closely scrutinized for indications of a cooling labor market and easing inflation pressures—two critical factors guiding the Fed’s rate decisions.
These releases will also represent some of the first comprehensive official economic readings available since the shutdown interrupted several key October data points.
Silver and copper remain elevated
Elsewhere in the metals complex, silver prices stayed close to record territory after strong gains last week, while other metals also moved higher.
Spot silver jumped 2.9% to $63.78 per ounce, remaining near last week’s all-time high. Platinum rose 2.2% to $1,807.75 an ounce.
Copper prices advanced as well, aided by position rollovers ahead of a contract expiry later this week. This helped offset weak economic data and lingering concerns over the property sector in China, the world’s largest copper consumer.
Three-month copper on the London Metal Exchange climbed 2% to $11,797 per metric ton. Prices had reached a record high of $11,952 on Friday amid supply tightness, before pulling back on renewed fears surrounding a potential bursting of the AI-related demand bubble.