Gold rose nearly 2% to an all-time high on Monday (September 22nd), boosted by growing expectations of further US interest rate cuts and continued demand for safe-haven assets amid political uncertainty.

Investors are eyeing an upcoming Federal Reserve speech and key inflation data for the latest policy signals. Spot gold rose 1.7% to a new record high of $3,747.08 an ounce, as of 2:06 p.m. ET (1806 GMT). US gold futures for December delivery closed 1.9% higher at $3,775.10.

The Russian Defense Ministry said its troops had captured the Kalynivske settlement in the Dnipropetrovsk region of Ukraine. Federal Reserve Governor Stephen Miran said the central bank must cut interest rates aggressively to mitigate risks to the economic outlook. The Fed cut rates by 25 basis points last week—the first rate cut since December—and signaled a willingness to ease further.

"Demand for safe-haven assets continues to flow amidst still-unsettled geopolitical issues, including the Russia-Ukraine war. The Fed's rate cut last week and the possibility of another Fed rate cut later in the year," also supported prices, said Jim Wyckoff, senior analyst at Kitco Metals.

Investors are watching a series of Fed speeches this week, including remarks from Chairman Jerome Powell on Tuesday, for fresh signals on the direction of the central bank's monetary policy. Friday's US core personal consumption expenditures price data is also in focus. Meanwhile, after the usual seasonal decline in gold purchases in the UK, central bank demand has recovered to 63 tonnes, matching the post-2022 average and adding to bullish sentiment, Societe Generale said in a note on Monday.

Spot silver rose 2.1% to $43.99 an ounce, its highest level in more than 14 years. Platinum rose 1% to $1,418.61, and palladium edged up 3.3% to $1,186.71.

"Silver may still find positive momentum as investors shift their attention beyond record-high gold prices. With the gold-silver ratio currently around 86, still above the five-year average of 82, silver may still have more room to catch up with its more popular precious metal cousin," said Han Tan, chief market analyst at Nemo.money. (alg)

Source: Reuters