LONDON – Gold hovered close to a record high on Monday as investors awaited key U.S. inflation data and speeches from Federal Reserve officials, following last week’s interest rate cut and hints of further monetary easing.
Spot gold rose 0.2% to $3,691.53 per ounce at 0418 GMT, just below last week’s all-time high of $3,707.40. Meanwhile, U.S. gold futures for December delivery gained 0.6% to $3,727.40.
“Gold is testing the $3,700 mark, and fresh highs could follow if U.S. data continues to support the dovish Fed outlook,” said Tim Waterer, Chief Market Analyst at KCM Trade.
Markets are closely watching Friday’s release of the core Personal Consumption Expenditure (PCE) price index, the Fed’s preferred inflation gauge. At least a dozen Fed officials, including Chair Jerome Powell, are also scheduled to speak this week.
The Fed cut interest rates by 25 basis points last Wednesday but flagged concerns about inflation, tempering expectations for the pace of future easing. Investors now anticipate two additional cuts in October and December.
Gold, up more than 40% year-to-date, has been buoyed by geopolitical risks, central bank demand, and monetary policy shifts. Spot silver climbed 1% to $43.49, platinum rose 0.4% to $1,409.47, and palladium gained 0.8% to $1,157.75.
