Gold prices saw a slight increase on Monday. The rise was driven by growing expectations of a U.S. Federal Reserve interest rate cut this week. A decrease like this would likely result in a decline of the U.S. dollar. A weakened dollar increases the attractiveness of gold for buyers using different currencies. Market participants are carefully examining economic indicators and Federal Reserve statements for further insights. Spot gold rose by 0.3%, hitting $4,206.99 per ounce, as of 0118. Gold futures in the U.S. for December delivery fell by 0.2%, closing at $4,236.30 per ounce.

The U.S. dollar saw a minor drop, staying near the six-week lows hit on December 4, making gold priced in dollars more accessible for international buyers. In September, U.S. consumer spending saw a slight uptick after three months of strong growth. This trend suggests a possible slowdown in the economy as the third quarter came to an end, linked to a weak labor market and rising living expenses that have reduced demand. This followed private payroll data showing the largest decline in more than two-and-a-half years last month. Recent remarks from various Fed officials have strengthened the outlook for monetary easing.

Reports indicates an 88.4% probability of a 25-basis-point rate cut at the Federal Reserve’s meeting on December 9-10. Lower interest rates typically favor non-yielding assets such as gold. On Thursday, data revealed that new U.S. unemployment benefit claims fell to 191,000 for the week ending November 29, marking the lowest level in over three years and significantly under the forecast of 220,000.

Elsewhere, silver held steady at $58.25 per ounce, platinum rose by 0.3% to $1,646.56, while palladium fell by 0.5% to $1,455.55.