Gold prices rise on U.S. interest rate cut expectations
Shafaq News/ Gold prices rose on Monday as investors anticipate a Federal Reserve interest rate cut next week and await key U.S. inflation data.
Spot gold increased by 0.2% to $2,502.29 per ounce, while U.S. gold futures gained 0.3% to $2,531.50.
The market's expectation of a rate cut has been supportive for gold prices, according to Peter A. Grant, vice president and senior metals strategist at Zaner Metals. He believes gold is poised to reach new all-time highs.
Traders are currently pricing in a 75% chance of a 25-basis point rate cut at the Fed's upcoming meeting, and a 25% chance of a 50-basis point reduction.
Investors will closely watch the U.S. consumer price index (CPI) data on Wednesday and the producer price index (PPI) data on Thursday for further clues on the potential size of the rate cut.
Spot silver rose 0.9% to $28.17 per ounce, platinum gained 2.3% to $942.60, and palladium was up nearly 3% to $937.75.
