Gold rose 1% on Monday (December 15) and held near a seven-week high, supported by a weaker dollar, expectations of interest rate cuts, and safe-haven buying due to geopolitical tensions, while silver rose but remained below Friday's record high.
Spot gold prices rose 1% to $4,343.96 an ounce at 0949 GMT. Bullion hit its highest level since October 21 on Friday. US gold futures rose 1.2% to $4,377.80 an ounce.
The US dollar held near a two-month low hit last week, making dollar-denominated gold more affordable for overseas buyers, while the yield on the benchmark 10-year US Treasury bond eased slightly.
"Stronger investor demand and three months of solid demand from central banks, as well as investors starting to anticipate even lower interest rates in 2026," are all supporting gold prices, said UBS analyst Giovanni Staunovo.
The US Federal Reserve last week cut interest rates by 25 basis points in a split vote, with further easing dependent on the labor market and inflation.
Markets are currently pricing in two US rate cuts next year, with investors eyeing this week's US non-farm payrolls report for further clues on monetary policy. Non-yielding assets, such as gold, typically benefit in a lower interest rate environment.
On the geopolitical front, Russia's central bank said on Friday that the European Union's plan to use Russian assets to extend loans to Ukraine was illegal and that it reserves the right to use all available means to protect its interests.
Spot silver rose 2.8% to $63.76 per ounce. Gold prices hit a record high of $64.65 on Friday before closing sharply lower. The precious metal has gained 120% this year, supported by tighter supplies and its inclusion on the U.S. list of essential minerals.
"Silver is benefiting from the same factors that support investment demand for gold (i.e., lower interest rates), but should also benefit from stronger industrial demand due to monetary and fiscal stimulus measures," Staunovo said.
Spot platinum rose 1.1% to $1,763.67, while palladium rose 2.4% to $1,523.11 per ounce. (alg)
Source: Reuters.com
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...