Gold kept charging higher on Monday, coming within about $23 of its all-time peak, as traders doubled down on US rate-cut bets and a softer dollar sweetened the move. Spot gold rose 0.9% to $3,477.56/oz by late morning New York time—its highest since April 22, when it set the record at $3,500.05. December futures gained 0.9% to $3,547.70, while a widely watched continuous contract briefly touched $3,557.10 earlier in the session.
The fireworks were brighter in silver. Spot silver jumped 2.6% to $40.69/oz, breaching $40 for the first time since September 2011. Platinum climbed 3.2% to $1,408.54, and palladium added 1.9% to $1,129.70.
What’s fueling the rally? A one-two punch of macro and mood:
San Francisco Fed President Mary Daly reiterated support for a rate cut, citing labor-market risks. With nonfarm payrolls Friday (consensus: +78,000 vs. +73,000 in July), investors are betting easier policy is coming as soon as September.
The DXY hovered near its lowest since July 28, making dollar-priced metals cheaper abroad. Friday’s PCE inflation printed +0.2% m/m and +2.6% y/y, keeping “cut soon” chatter alive. Ongoing worries about central-bank independence and trade policy uncertainty added a defensive bid.
“Sticky inflation, softening sentiment and expected cuts” kept gold—and especially silver—bid, one commodities strategist said, while another flagged tight silver supply as an extra tailwind.
With US markets closed for Labor Day, liquidity was thinner—but bullion still punched higher. Bottom line: in a lower-rates setup, non-yielding gold tends to shine, and silver’s catch-up move suggests the precious-metals trade isn’t just a one-metal story.
Reuters and the Wall Street Journal contributed to this report.
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