Gold prices climbed on Monday, extending a five-day rally after touching a near two-month high. The move was supported by a weaker U.S. dollar following less hawkish signals from the Federal Reserve, which helped lift broader precious metals markets.
At 08:10 ET (13:10 GMT), spot gold rose 0.8% to $4,338.56 an ounce. March gold futures gained 1% to $4,370.45 an ounce.
Gold extends gains after dovish Fed outlook
Gold continued to build on last week’s gains as the U.S. dollar and Treasury yields weakened, creating a supportive backdrop for bullion.
The rally followed dovish messaging from the Federal Reserve. The central bank cut interest rates last week and announced it will begin purchasing short-dated U.S. Treasuries from 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 due to increased cash injections.
Gold typically benefits in such an environment. In addition, the Fed’s announcement boosted safe-haven demand for bullion, as it raised concerns about the underlying strength of the U.S. economy.
U.S. jobs and inflation data in focus
Attention now turns to key U.S. economic releases, with November nonfarm payrolls due on Tuesday and consumer price index (CPI) data scheduled for Thursday.
The payrolls report, which normally comes out on the first Friday of each month, was delayed after a prolonged government shutdown in October and November.
Investors will be watching closely for further signs of cooling labor market conditions and easing inflation, both of which are critical factors in the Federal Reserve’s rate-cut decisions.
These reports will also represent the most up-to-date official economic data available since several releases were disrupted by the shutdown.
Silver and copper remain elevated
Elsewhere, silver prices stayed near record highs after strong gains last week, while other industrial metals also advanced.
Spot silver climbed 2.9% to $63.780 an ounce, remaining close to the all-time high reached last week. Spot platinum rose 2.2% to $1,807.75 an ounce.
Copper prices also moved higher as traders rolled positions ahead of a contract expiry later this week, temporarily easing concerns over weak data and the troubled property sector in top consumer China.
Three-month copper on the London Metal Exchange rose 2% to $11,797 per metric ton.
Copper had reached a record high of $11,952 on Friday amid worries over tight supply, before pulling back on renewed fears of an AI-driven market bubble.
