Gold prices held close to a six-week high on Monday, supported by a weaker U.S. dollar and growing expectations that the Federal Reserve may cut interest rates later this month.
Spot gold rose 0.2% to $4,240.55 an ounce by 02:32 ET (06:32 GMT) after touching a six-week high of $4,256.2 earlier in the session. U.S. gold futures for February delivery increased 0.5% to $4,274.55. Gold gained more than 4% last week.
Weaker dollar and Fed expectations support gold
The U.S. Dollar Index fell to a two-week low on Monday, making gold more attractive for overseas buyers. A cautious mood in global markets also lifted demand for safe-haven assets.
Market pricing now points to an 87% chance of a 25-basis-point rate cut at the Fed’s December meeting. The shift in expectations followed a run of softer U.S. economic data and signs that inflation is easing.
However, investor caution remained due to the lack of fresh government data after the extended shutdown. Mixed comments from Fed officials added further uncertainty.
Political developments also drew attention. President Donald Trump said on Sunday that he already knows his choice for the next Federal Reserve Chair but did not identify the candidate. His remarks renewed speculation around several potential nominees, including Kevin Hassett, former governor Kevin Warsh, and current governor Christopher Waller. The selection could influence how aggressively the Fed cuts rates in 2026.
Despite the uncertainty, gold’s short-term momentum stayed firm as investors continued to hedge against volatility in equities and currencies.
Silver reaches record high; copper steady
Other precious and industrial metals saw mixed moves.
Silver futures rose 0.4% to $56.65 per ounce after hitting a record $57.815 earlier.
Platinum futures climbed 0.7% to $1,700.60 an ounce.
Copper traded flat, with London Metal Exchange futures at $11,207.20 a ton and U.S. copper futures steady at $5.30 per pound.
Fresh economic data from China showed factory activity weakening again, with both official and private PMI readings indicating an eighth straight month of contraction.
