Gold prices saw an increase on Monday, bolstered by a drop in U.S. Treasury yields, as investors react to the Federal Reserve’s recent rate cut. Silver held steady after a week of remarkable performance, driven by limited supplies and strong industrial demand. A Malian court has ordered the return of confiscated gold to Barrick Mining, while demand from India and China shows signs of decreasing. Spot gold rose by 0.3%, hitting $4,313.08 per ounce as of 0119. On Friday, it hit its highest point since October 21. Gold has appreciated approximately 64% this year, breaking several records and establishing itself as one of the leading assets of 2025.

On Monday, U.S. gold futures rose by 0.39%, hitting a price of $4,344.80 per ounce. Benchmark 10-year U.S. Treasury yields saw a minor drop, making non-yielding bullion more appealing. The Federal Reserve implemented a 25-basis-point rate cut last week, indicating a notably split vote. Nonetheless, it indicated a likely pause in further cuts because of persistent inflationary pressures and an unclear labor market perspective. On Friday, two Federal Reserve officials who were against the rate cut expressed that inflation is still too high to justify lowering borrowing costs, pointing to the lack of recent official data on price increases. Investors are currently expecting two rate cuts for the upcoming year, with this week’s non-farm payrolls report likely to provide further insights into the Federal Reserve’s policy direction. Assets such as gold often appreciate when interest rates are low.

A judge in Mali has ordered the return of 3 metric tons of gold that were seized almost a year ago from Barrick Mining’s Loulo-Gounkoto complex, according to the sources. Gold discounts in India increased last week as demand decreased, despite the ongoing wedding season and record-high prices. At the same time, Chinese demand remained low due to market fluctuations and elevated spot prices.

Spot silver held steady at $62.02 per ounce. It hit a high of $64.64 on Friday before seeing a notable drop at the end. Silver gained around 6% last week, raising the year-to-date increase to 115% because of tightening inventories, strong industrial demand, and its inclusion on the U.S. critical minerals list. Spot platinum fell by 0.2%, closing at $1,741.82 on Monday, while palladium rose by 0.4%, hitting $1,493.40 per ounce.