Gold held steady near a record high on Monday as investors looked ahead to U.S. inflation data and a lineup of Federal Reserve speakers this week for more insights on policy, following the central bank’s recent interest rate cut and hints of potential further easing. Spot gold rose by 0.1% to $3,689.08 per ounce as of 0044. Bullion hit a record high of $3,707.40 on Wednesday.
Gold futures in the U.S. for December delivery rose by 0.5%, hitting a price of $3,724.50. Attention in the market has shifted to the upcoming release of the U.S. core Personal Consumption Expenditure price index, which is the central bank’s preferred measure of inflation. The data will be released on Friday. The Federal Reserve lowered interest rates by 25 basis points last week, suggesting the potential for additional easing in the future, while also voicing concerns about persistent inflationary pressures. This week, at least twelve Federal Reserve officials will be addressing the public, with Chair Jerome Powell slated to speak on Tuesday. Market participants are eagerly awaiting further information about the central bank’s monetary policy direction.
New Fed Governor Stephen Miran on Friday asserted his position as an independent policymaker, following his dissent in favor of substantial rate cuts during Wednesday’s policy meeting. He stated his aim to convince his colleagues to support more significant reductions in future meetings. Investors are expecting two additional rate cuts this year, each by 25 basis points in October and December, with probabilities of 93% and 81%, respectively. Bullion has seen an increase of over 40% this year, driven by rising geopolitical and economic uncertainty, greater central bank acquisitions, and a loosening of monetary policy. Safe-haven bullion, offering no yield, typically shows robust performance when interest rates are low.
SPDR Gold Trust, the leading gold-backed exchange-traded fund worldwide, announced a rise in its holdings by 1.94%, totaling 994.56 metric tons on Friday, an increase from 975.66 tons on Thursday. Spot silver rose by 0.1% to $43.12 per ounce, staying near a 14-year high. Platinum dropped by 0.3%, closing at $1,399.69, whereas palladium rose by 0.4%, hitting $1,154.17.