Gold gained 1% this Monday and approached its highest in seven weeks, supported by a weaker dollarexpectations of interest rate cuts and safe haven buying due to geopolitical tensions, while silver also rose, although it remained below the all-time high touched on Friday.
At 0949 GMT, spot gold was up 1% at $4,343.96 an ounce, after hitting its highest level since October 21 on Friday.
Gold futures in the United States advanced 1.2% to $4,377.8.
The dollar hovered around two-month lows hit last week, making bullion cheaper for foreign buyers, while the 10-year U.S. Treasury yield declined.
“Increased investor demand and three months of strong demand from central banks, as well as the fact that investors are starting to anticipate even lower rates in 2026, are supporting gold,” said UBS analyst Giovanni Staunovo.
Last week, the Federal Reserve cut rates by 25 basis points in a split vote, and further easing will depend on the labor market and inflation levels.
Markets are currently forecasting two U.S. rate cuts next year, and investors will be watching this week’s nonfarm payrolls report for more clues on monetary policy.
Non-interest-bearing assets, such as gold, often benefit from a low rate environment.
The cash money added 2.8%, to $63.76 an ounce, after hitting a historic peak of $64.65 on Friday, before closing with a sharp decline
The metal has appreciated 120% this yeardriven by supply shortages and its inclusion on the US list of critical minerals.
In other precious metals, the platinum spot rose 1.1%, to $1,763.67 an ounce, and the palladium it gained 2.4%, to $1,523.11.
