Gold prices edged higher during Asian trading on Monday, extending gains after touching a near two-month high in the previous session. The rally was supported by a weaker U.S. dollar and lower Treasury yields, following less hawkish signals from the Federal Reserve that lifted sentiment across precious metal markets.
Silver prices held close to record highs after strong gains last week, while other metals also traded higher. Market attention this week is firmly on key U.S. economic data, including nonfarm payrolls and consumer price inflation, which are expected to influence the Federal Reserve’s interest rate outlook.
Spot gold rose 1% to $4,343.62 an ounce, while March gold futures gained 1.1% to $4,375.80 by 01:00 ET (06:00 GMT). Spot silver climbed 1.6% to $62.99 an ounce, remaining near last week’s record high. Platinum also advanced, rising 1.8% to $1,781.09 an ounce.
Metals extend gains after dovish Fed signals
Gold and other metals continued last week’s upward momentum as the U.S. dollar and Treasury yields weakened. The move followed dovish signals from the Federal Reserve, which cut interest rates last week and announced plans to begin purchasing short-dated U.S. Treasuries starting in December at a monthly pace of $40 billion.
The Fed’s renewed asset purchases point to a more accommodative monetary policy stance, particularly as liquidity conditions are expected to loosen further through cash injections. Such an environment typically supports gold prices, as lower yields reduce the opportunity cost of holding non-yielding assets.
The Fed’s announcement also boosted safe-haven demand for gold, as it raised fresh concerns about the underlying strength of the U.S. economy.
Key U.S. data in focus
Investors are now turning their attention to November’s U.S. nonfarm payrolls and consumer price index data, scheduled for release on Tuesday and Thursday, respectively. The payrolls report, usually published on the first Friday of the month, was delayed due to the recent government shutdown.
Markets will be closely watching for signs of cooling inflation and a softer labor market, both of which are critical factors in shaping future Fed rate decisions. These releases will also offer the most up-to-date economic insight following disruptions to October data caused by the shutdown.
