Gold prices held close to record levels in Asian trading on Monday, extending gains for a fourth consecutive week amid rising expectations that the U.S. Federal Reserve will lower interest rates later this week.
Spot gold inched up 0.1% to $3,645.03 per ounce by 01:29 ET (05:29 GMT), remaining near last week’s all-time high of $3,673.95. U.S. Gold Futures fell slightly, trading at $3,682.70 per ounce.
The precious metal has risen roughly 1.5% over the past week, marking its fourth weekly advance. Year-to-date, gold has surged nearly 40%, driven by safe-haven demand linked to trade tensions under President Donald Trump’s policies.
Investors Eye Fed Rate Decision
The Federal Reserve begins its policy meeting on Tuesday, with a rate decision expected Wednesday. Traders are currently pricing in over a 96% probability of a 25-basis-point cut, with some speculation of a larger move. Confidence in a policy easing has grown following major revisions to official employment data, signaling a cooling labor market.
August payrolls added only 22,000 new jobs, pushing the unemployment rate to 4.3%. Although the Consumer Price Index for August rose 0.4% month-on-month, keeping annual inflation at 2.9%, analysts suggest the Fed will likely focus on labor market softness. Gold is highly sensitive to interest rate expectations, as lower rates reduce the opportunity cost of holding the non-yielding asset and typically weigh on the U.S. dollar.
Other Metals and Chinese Data
Other precious metals were mostly flat. Silver Futures slipped 0.2% to $42.76 per ounce, while platinum futures remained largely unchanged at $1,410.45 per ounce. Copper also posted modest gains, with London Metal Exchange benchmark futures up 0.3% to $10,083.30 per ton and U.S. copper futures rising 0.2% to $4.66 per pound.
Market sentiment was tempered by Chinese economic data. Industrial production in August grew at its slowest pace in a year, falling short of expectations, while retail sales also slowed from July, missing market estimates. As the world’s largest copper importer, China’s softening data contributed to subdued activity in base metals.
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