Gold prices rose on Monday morning, reaching $4,212.70 per ounce, as investors looked ahead to the US Federal Reserve’s final meeting of the year. Many traders expect the Fed to cut interest rates this week, a move that typically supports gold prices.
The metal has been steadily gaining. It is 0.33% higher than Friday, up 2.35% over the past month, and has risen 58% compared to this time last year.
Recent US job numbers were mixed, and inflation came in as expected, both signs that the economy may be slowing enough for the Fed to loosen monetary policy. Markets now see an 88% chance that the Fed will cut rates by 0.25 percentage points, bringing borrowing costs down to between 3.75% and 4.0%. Two more cuts are expected next year.
Investors are also watching Tuesday’s JOLTS job openings report, the last major labour-market update before the Fed announces its decision.
Meanwhile, China continues to boost its gold holdings, increasing its reserves for the 13th month in a row. The country now holds about 74.12 million troy ounces of gold, showing strong demand from one of the world’s biggest buyers.
Gold’s strong start to the week reflects rising investor caution, expectations of lower US interest rates, and steady buying from major central banks.
