Gold prices remained elevated in Asian markets on Monday, extending a four-week streak of gains as traders positioned for an anticipated U.S. Federal Reserve rate cut later this week.
Spot gold rose marginally, up 0.1% to $3,645.03 per ounce by 01:29 ET (05:29 GMT), staying close to last week’s record peak of $3,673.95. U.S. Gold Futures ticked down slightly to $3,682.70 per ounce.
The precious metal has gained roughly 1.5% over the past week, marking its fourth consecutive weekly increase. Year-to-date, gold has surged nearly 40%, reflecting strong safe-haven demand amid trade tensions under President Donald Trump’s administration.
Fed Decision in Focus
The Federal Reserve is set to begin its meeting on Tuesday, with a rate decision expected Wednesday. Market participants currently assign more than a 96% probability to a 25-basis-point cut, with some bets on a larger reduction. Optimism for imminent easing has grown after significant revisions to U.S. labor data highlighted a cooling job market.
In August, payroll growth was modest at just 22,000 jobs, raising unemployment to 4.3%. While the Consumer Price Index rose 0.4% month-on-month, keeping annual inflation at 2.9%, analysts note that the Fed is likely to prioritize signs of labor market weakness. Gold is particularly sensitive to interest rate expectations, as lower rates reduce the opportunity cost of holding a non-yielding asset and generally weaken the dollar.
Other Metals and Chinese Data Weigh on Markets
Other precious metals were mixed. Silver futures slipped 0.2% to $42.76 per ounce, and platinum futures remained largely flat at $1,410.45 per ounce. Copper also posted small gains, with London Metal Exchange benchmark futures up 0.3% to $10,083.30 per ton and U.S. copper futures rising 0.2% to $4.66 per pound.
Market sentiment was dampened by Chinese economic indicators. Industrial production in August expanded at its slowest pace in a year, and retail sales growth slowed compared with July, both falling short of market expectations. As the world’s largest copper importer, China’s weaker data added caution to the metals market.
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