Gold prices rose slightly on Monday (October 20th) after rallying to a record high, supported by expectations of further US interest rate cuts and increased demand for safe-haven assets amid the government shutdown in Washington. Investors are now awaiting market direction from the upcoming US-China trade talks.
Spot gold prices rose 0.3% to $4,259.84 per ounce at 09:51 GMT, while US gold futures for December delivery jumped 1.5% to $4,275 per ounce.
Spot silver also rose 0.5% to $52.12, recovering some ground after plunging 4.4% on Friday, despite earlier touching a record $54.47.
Meanwhile, Ole Hansen, Head of Commodity Strategy at Saxo Bank, said, "We're still holding well above $4,000 for gold and $50 for silver. As long as these levels are maintained, I don't see any major pressure for a long-term sell-off," adding that gold sentiment remains very bullish.
Trump's Tariff Threats & Fed Rate Cut Expectations in Focus
Hansen also highlighted that the US government shutdown remains a support for gold prices, while the meeting between the US and China in the next two weeks will be a key focus.
US President Donald Trump said on Friday that 100% tariffs on Chinese goods are unsustainable in the long term, and he plans to meet with Chinese President Xi Jinping in two weeks.
Gold, which has set new records several times this year, most recently at $4,378.69 last Friday, received an additional boost after the US threatened to increase tariffs over China's rare earth metal export controls. However, gold prices fell more than 1.8% on Friday following Trump's statement.
US consumer inflation (CPI) data, delayed by the government shutdown, is scheduled for release this Friday, just days before the Federal Reserve's October 28-29 policy meeting. Core inflation is expected to remain at 3.1% in September.
The Fed is widely expected to cut interest rates by 25 basis points. Meanwhile, China's economic growth slowed to its weakest level in a year in the third quarter.
"The weakening Chinese property market remains a major support for gold prices," Hansen said.
Among other metals, platinum fell 0.9% to $1,595.85 per ounce, and palladium weakened 1.4% to $1,452.89 per ounce.
Source: Reuters
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