Gold prices rose on Monday (November 3), boosted by expectations of further US interest rate cuts following comments from the US Federal Reserve Board's Christopher Waller, although a stronger dollar and easing trade tensions curbed those gains.

Spot gold rose 0.5% to $4,020.45 per ounce at 09:05 GMT. US gold futures for December delivery rose 0.9% to $4,031.50. "We're still in consolidation mode. The lack of US economic data is a bit of a complicating factor, but weaker US economic data will support further Fed rate cuts and allow gold to move to $4,200 per ounce by year-end," said UBS analyst Giovanni Staunovo

The Fed should cut its benchmark interest rate again in December, the Fed's Waller said on Friday, citing a weakening labor market. Traders now price in around a 70% chance of a December Fed rate cut, according to the CME's FedWatch Tool. Non-yielding gold thrives when interest rates are low and amid economic uncertainty.

Investors are also monitoring other news, including this week's US ADP employment data and the ISM PMI, for indicators that could shift the Fed's hawkish stance. "The safe-haven play has eased recently, as US-China trade tensions ease. This could also be a rotation towards much riskier plays in equities," said OANDA analyst Kelvin Wong.

US President Donald Trump last week agreed to cut tariffs on China in exchange for concessions from Beijing on illicit fentanyl trade, US soybean purchases, and rare earth metal exports.

Meanwhile, the dollar index is near a three-month high, making gold more expensive for buyers using other currencies. Elsewhere, spot silver rose 0.5% to $48.90 per ounce, platinum rose 2.2% to $1,601.90, and palladium rose 1.3% to $1,452.58. (alg)

Source: Reuters