Gold prices hovered close to their highest level in six weeks on Monday, lifted by a softer U.S. dollar and growing confidence that the Federal Reserve may lower interest rates later this month.
Spot gold inched up 0.2% to $4,240.55 an ounce at 02:32 ET (06:32 GMT), after touching a six-week peak of $4,256.2 earlier in the session. February U.S. gold futures climbed 0.5% to $4,274.55.
The metal surged more than 4% last week.
Dollar weakness, rate-cut expectations bolster gold
The U.S. Dollar Index slipped to a two-week low on Monday, boosting the appeal of gold for international buyers. A broader risk-off tone in global markets also helped sustain demand for safe-haven assets.
Traders now price in an 87% chance of a 25-basis-point Fed rate cut in December, reflecting a run of weaker U.S. economic indicators and signs that inflation pressures are easing.
These expectations have firmed over the past week. However, investor conviction remains restrained, with the prolonged government shutdown limiting the flow of fresh economic data and inconsistent messaging from Federal Reserve officials leaving room for doubt.
Politics added to the mix on Sunday, when U.S. President Donald Trump remarked that he already knows whom he intends to nominate as the next Federal Reserve Chair—though he did not disclose the name.
His comments revived speculation over potential candidates, including Kevin Hassett, former Fed Governor Kevin Warsh, and current Governor Christopher Waller.
The eventual choice could shape market assumptions about how aggressively the Fed eases policy in 2026.
Against this backdrop of uncertainty, gold’s short-term momentum has held firm, with investors continuing to hedge against volatility in both currency and equity markets.
Silver hits new highs; copper trades flat
Movements across other metals were mixed on Monday.
Silver futures rose 0.4% to $56.65 per ounce after briefly setting a record at $57.815/oz. Platinum futures advanced 0.7% to $1,700.60/oz.
On the industrial side, benchmark copper on the London Metal Exchange held steady at $11,207.20 a ton, while U.S. copper futures were also unchanged at $5.30 per pound.
Fresh data from China showed factory activity contracting for an eighth consecutive month, with both official and private PMI readings pointing to persistent weaknesses in domestic and global demand.