Gold hit a more than four-month high on Monday, as increased bets for a US Federal Reserve interest rate cut this month lifted bullion’s allure, while silver rose above $40 per ounce for the first time in more than a decade.
Spot gold rose 1.2 percent to $3,486.86 per ounce by 8:41 a.m. Saudi time, hitting its highest point since April 23. US gold futures for December delivery gained 1.1 percent to $3,554.60.
“Dovish comments from San Francisco Fed President Mary Daly helped traders looked past a higher core PCE (Personal Consumption Expenditures) read on Friday, and kept the door open for a 25-basis-point rate cut this month,” City Index senior analyst Matt Simpson said.
A US appeals court has also deemed most of US President Donald Trump’s tariffs illegal, weighing further on the dollar and sending gold to a four-month high, Simpson said.
Data showed that the US PCE price index rose 0.2 percent month-on-month, and 2.6 percent year-on-year, both in line with expectations.
