Gold prices remained close to all-time highs on Monday following last week’s strong rally, as weaker-than-expected U.S. employment data increased speculation that the Federal Reserve could cut interest rates as soon as next week. Spot gold traded steadily at $3,585.68 per ounce, just shy of Friday’s record peak of $3,600.03 per ounce, while December gold futures edged down 0.7% to $3,626.52 per ounce by 01:39 ET (05:39 GMT).
Bullion surged over 4% last week and has advanced in nine of the past ten trading sessions. Year-to-date, gold has climbed nearly 37%, driven by safe-haven demand amid trade tensions and robust central bank purchases, particularly from China.
Fed Rate-Cut Speculation Gains Momentum
The latest U.S. jobs report showed a slowdown in employment growth alongside a rise in the unemployment rate to 4.3%. The figures fueled expectations that the Fed may implement a 25-basis-point rate cut at its September meeting, with some market participants considering a possible 50-basis-point reduction. Lower interest rates decrease the opportunity cost of holding non-yielding assets like gold and typically weigh on the U.S. dollar, making gold more attractive to investors.
The U.S. Dollar Index Futures, which track the dollar against a basket of major currencies, remained relatively flat on Monday but stayed soft following last week’s declines triggered by the jobs data. Investors now await Thursday’s U.S. inflation report, which could further influence expectations for Fed policy and gold’s near-term trajectory.
Other Precious Metals and Copper Market Updates
Precious metals beyond gold were mixed. Platinum futures traded flat at $1,385.60 per ounce, while silver futures slipped 0.6% to $41.30 per ounce, retreating from last week’s 14-year high. Copper prices were largely unchanged on the London Metal Exchange at $9,901.65 per ton, with U.S. copper futures gaining 0.3% to $4.56 per pound.
Data from China, the world’s largest copper importer, showed that export growth slowed in August as momentum from the recent U.S.-China trade truce faded. Imports also moderated compared with the previous month, signaling ongoing weakness in domestic demand.
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