Gold prices moved within a tight range on Monday as the U.S. dollar hovered near a five-week low. The currency’s weakness reflected firm expectations that the Federal Reserve will cut interest rates this week, supporting demand for the precious metal.
At 09:00 ET (14:00 GMT), spot gold inched up 0.1% to $4,201.96 per ounce, while U.S. gold futures for February slipped 0.3% to $4,231.40 per ounce.
Gold steady as markets await Fed decision
Activity in the gold market remained muted as traders focused on the upcoming Federal Reserve meeting. Confidence is growing that the central bank will deliver a 25-basis-point rate cut on Wednesday.
Recent data — including a softer private payrolls report and signs of slowing labor-market momentum — has strengthened expectations of monetary easing. The delayed release of the U.S. core Personal Consumption Expenditures index, the Fed’s preferred measure of inflation, showed only a modest monthly rise and an annual rate that continues to trend lower.
Lower interest rates reduce the opportunity cost of holding gold, while a weaker dollar can make bullion more attractive to international buyers. Even so, gold’s gains remained limited as investors reacted to mixed messages from Federal Reserve officials. Several policymakers have cautioned against easing too quickly, adding uncertainty to the outlook.
Markets now await the official decision and Federal Reserve Chair Jerome Powell’s press conference for clarity on the path ahead.
Metal markets quiet
Other precious and industrial metals also traded in narrow ranges on Monday, reflecting broader caution across commodity markets.
Silver futures fell 0.8% to $58.583 per ounce, while platinum futures dipped 0.1% to $1,668.55 per ounce. On the industrial side, benchmark copper on the London Metal Exchange rose 0.1% to $11,654.20 per ton, while U.S. copper futures slipped 0.4% to $5.4380 per pound.
