Bengaluru — Gold surged past the $3,600/oz level for the first time on Monday, hitting a fresh record high as soft US labour data reinforced expectations the Federal Reserve will cut interest rates next week.
Spot gold rose 1.3% to $3,631.66/oz in morning trade. Bullion hit a record high of $3,636.69.
US gold futures for December delivery were up 0.5% to $3,670.80/oz.
Gold could extend its momentum towards $3,700 —$3,730 in the near-term, with any brief pullbacks likely seen as buying opportunities, said Peter Grant, vice-president and senior metals strategist at Zaner Metals.
“Continued labour market softness and expectations of ongoing Fed rate cuts into early 2026 could provide sustained support for bullion.”
Friday’s jobs report showed US employment growth slowed sharply in August. Traders now see a 90% chance of a quarter-point rate cut at the Fed's September meeting, with about a 10% chance of a larger 50 basis points cut, according to the CME FedWatch tool.
Lower rates reduce the opportunity cost of holding non-yielding bullion.
Gold prices are up 38% so far this year, after gaining 27% in 2024, bolstered by dollar softness, strong central bank accumulation, dovish monetary settings, and heightened global uncertainty.
China’s central bank extended its gold-buying streak to a 10th straight month in August, official data showed on Sunday.
Benchmark 10-year US Treasury yields, meanwhile, were near their lowest in five months.
Investors are now awaiting US producer price data on Wednesday and consumer prices on Thursday for further clues on the Fed’s policy path.
“If weakness in US data continues, then so too should the ongoing bullish momentum in gold, as both the US dollar and yields fall further,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.
Conversely “if the US data shows surprise resilience in the coming weeks, then that might cause gold to correct from these elevated levels,” Razaqzada said.
Elsewhere, spot silver rose 1% to $41.39/oz. Platinum was up 0.7% to $1,382.25, and palladium gained 2.1% to $1,134.56.
Reuters
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