By 1049 GMT, spot gold had increased 0.7% to $3,469.84 an ounce, its best level since April 22, when it hit a record high of $3,500.05.
A stronger dollar and forecasts on a U.S. Federal Reserve rate decrease helped gold to a more than four-month high on Monday, trading around $30 below all-time highs, while silver broke beyond $40 per ounce for the first time since 2011.
Gold and Silver Surge
By 1049 GMT, spot gold had increased 0.7% to $3,469.84 an ounce, its best level since April 22, when it hit a record high of $3,500.05. December delivery U.S. gold futures up 0.8% to $3,542.80.
At $40.60 an ounce, spot silver surged 2.3%, reaching its highest level since September 2011.
When compared to competitors, the U.S. dollar was trading close to its lowest level since July 28, which reduced the cost of greenback-priced gold for foreign buyers. [USD/]
Gold Silver Market Drivers
Ole Hansen, head of commodities strategy at Saxo Bank, said that “gold, and notably silver, sustained Friday’s robust gains, underpinned by sticky U.S. inflation, falling consumer mood, (anticipated) rate cuts… and fears about Fed independence.”
According to statistics released on Friday, the U.S. personal consumption expenditures price index increased 2.6% annually and 0.2% monthly, as anticipated.
“A restricted supply market is helping to sustain an upward bias, while silver is making a move higher in response to projections of decreased rates,” said Tim Waterer, chief market analyst at KCM Trade.
Fed Eyes Rate Cuts
Mary Daly, president of the San Francisco Federal Reserve Bank, reiterated on social media this week her backing for a rate cut, citing uncertainties in the job market.
According to Giovanni Staunovo, an analyst at UBS, “the market is looking for Friday’s U.S. employment market data, thinking that this would enable the Fed to begin rate decreases from September forward (since) this stimulates investment demand.”
Jobs Tariffs Metals Update
Non-farm payrolls for August are coming on Friday, and according to a Reuters survey, they will have increased by 78,000 jobs, up from 73,000 in July.
Generally speaking, non-yielding gold benefits from low interest rates.
Although a U.S.A court ruling ruled that most of the tariffs are illegal, U.S. Trade Representative Jamieson Greer said on Sunday that President Donald Trump’s government was still in negotiations with trading partners.
Other news: platinum rise 1.9% to $1,389.93 as well as palladium rise 0.9% to $1,119.07.