Gold prices extended their four-day rally, as traders turned to the precious metal for safety amid growing concerns over the Federal Reserve’s interest rate policy. The yellow metal traded near a one-month high, hovering around $2,690 an ounce, following a 1.9% gain last week despite challenges from rising bond yields and a strengthening dollar.
A recent report revealed robust performance in the US labor market, prompting some major banks to reduce their expectations for further rate cuts. While higher interest rates typically weigh on non-yielding assets like gold, the ongoing uncertainty surrounding US economic data and potential political shifts—particularly with Donald Trump’s possible return to the White House—have driven investors toward safer assets. Chris Weston, Head of Research at Pepperstone Group Ltd., noted that stronger-than-expected economic data led traders to reduce equity risk in favor of gold and the dollar.
Attention now turns to upcoming US inflation data, with the Consumer Price Index (CPI) report scheduled for release on Wednesday. Investors will also be closely monitoring other key indicators, including the New York Fed’s one-year inflation expectations on Monday, producer prices on Tuesday, and jobless claims on Thursday.
As of 8:35 a.m. in Singapore, spot gold remained stable at $2,689.71 per ounce, while the Bloomberg Dollar Spot Index showed little movement. Silver and palladium held steady, but platinum experienced a decline.
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