Gold prices remained stable on Monday, staying close to a record high, as investors turned their attention to the upcoming U.S. Federal Reserve meeting this week, where it is anticipated that policymakers will announce a rate cut after a series of disappointing reports. Gold maintained its position at $3,636.73 per ounce, as of 0031. Bullion reached an unprecedented peak of $3,673.95 on Tuesday.
U.S. gold futures for December delivery were down 0.2% at $3,673.60. The U.S. dollar index edged 0.1% higher, making gold more expensive for overseas buyers. On Friday data indicated that U.S. consumer sentiment fell for the second month in a row in September, as worries about business conditions, the labor market, and inflation impacted outlook. Inflation data released last Thursday came in slightly above expectations, but market participants largely believe this will not deter the U.S. Fed from a widely anticipated quarter-percentage-point rate cut on Wednesday.
The Fed’s policy meeting this week comes amid challenges, including a legal dispute over its leadership and efforts to confirm U.S. President Donald Trump’s nominee to the Board of Governors. Investors will pay close attention to the Fed’s position on labor market issues and wider economic risks. The world’s largest gold-backed exchange-traded fund, reported a decrease in its holdings by 0.32%, dropping to 974.80 tons on Friday from 977.95 tons on Thursday. Speculators reduced their net long positions in gold by 2,445 contracts to 166,417 in the week ended September 9. U.S. and Chinese officials wrapped up the first day of discussions in Madrid on Sunday regarding their tense trade relations, as Washington urges its allies to impose tariffs on imports from China due to its purchases of Russian oil.
Meanwhile, Trump stated on Sunday that he is prepared to impose sanctions on Russia, but Europe must respond in a manner that aligns with the actions of the United States. Elsewhere, spot silver was steady at $42.18 per ounce, platinum rose 0.8% to $1,402.25, and palladium decreased by 0.3% to $1,193.75.