Gold prices stayed close to record highs on Monday after last week’s strong rally. A weak U.S. jobs report boosted expectations that the Federal Reserve could cut interest rates as early as next week.
Spot gold held steady at $3,585.68 per ounce, just below Friday’s all-time high of $3,600.03. Meanwhile, December gold futures slipped 0.7% to $3,626.52 per ounce by 01:39 ET (05:39 GMT).
Gold surged more than 4% last week, marking gains in nine of the last ten sessions. Year-to-date, the precious metal is up nearly 37%, supported by safe-haven demand tied to President Donald Trump’s trade policies and strong central bank buying, particularly from China.
Fed Rate-Cut Bets Strengthen
The latest U.S. jobs report showed a sharp slowdown in employment growth and a rise in unemployment to 4.3%, the highest in nearly four years. This fueled market expectations of a 25-basis-point rate cut at the Fed’s September meeting, with some investors even pricing in a slim chance of a 50-point move.
Lower interest rates reduce the opportunity cost of holding gold, which does not yield interest. They also weaken the dollar, making bullion more attractive to global investors.
The U.S. Dollar Index Futures was little changed on Monday, but remained weak after Friday’s sharp drop. Traders now await Thursday’s U.S. inflation report, which could influence both Fed policy and gold’s next direction.
Silver and Base Metals Movement
Other precious metals saw mixed performance. Platinum futures traded flat at $1,385.60 per ounce, while silver futures slipped 0.6% to $41.30, retreating from last week’s 14-year high.
On the industrial side, copper futures on the London Metal Exchange held steady at $9,901.65 a ton, while U.S. copper futures edged up 0.3% to $4.56 a pound.
Fresh trade data from China, the world’s largest copper importer, showed export growth slowed in August. Imports also weakened, reflecting ongoing pressure from sluggish domestic demand despite the temporary lift from a U.S.-China trade truce earlier this year.
