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Reuters reported that gold prices rose on Monday as a weaker dollar and fading expectations of a U.S. Federal Reserve rate hike next month supported the metal. Spot gold increased 0.4 percent to $4,391.07 per ounce by 0248 GMT while U.S. gold futures for December delivery gained 0.3 percent to $4,448.10. The metal had reached a more-than-two-month high the week before as soft economic data continued to influence market sentiment.
The U.S. dollar index dropped 0.1 percent according to the report rendering gold more affordable for non-dollar currency holders. An unexpected decline in July nonfarm payrolls along with only mild consumer price inflation had lowered the odds of a rate increase in September a CNBC report indicated. This development added to the appeal of bullion which offers no yield but serves as a traditional store of value during periods of monetary uncertainty. Market participants had already begun adjusting positions ahead of the central bank’s next policy meeting.
Among industrial and precious metals silver posted the strongest gain climbing 1.4 percent to $65.53 per ounce as reported by Reuters. Platinum edged up 0.3 percent to $1,752.36 per ounce and palladium rose 1.6 percent to $1,333.35. The coordinated movement across the complex reflected broader investor flows into commodities amid shifting interest rate expectations. Trading activity remained robust as participants weighed the latest batch of U.S. economic indicators.
Trading Economics data shows that gold has advanced 9.7 percent over the past month and stands 31.94 percent higher than levels seen a year earlier. The commodity touched a record high of $5,608.35 in January 2026 according to the platform. Such gains come as central banks continue to accumulate gold reserves to diversify holdings away from traditional fiat currencies a trend noted in multiple industry assessments.
In an interview with CNBC Nick Cawley a contributing analyst for Solomon Global said “This suggests markets are growing more cautious about further U.S. rate increases.” He pointed to the recent benign trend in the inflation data and last Friday’s soft non-farm payrolls report. Analysts anticipate that the Federal Reserve will closely monitor upcoming releases before finalizing its September decision with gold likely to remain sensitive to any shifts in policy outlooks.
The platform projects gold to trade at $4,426.71 per ounce by the end of the current quarter rising further to $4,790.30 in 12 months. This outlook incorporates expectations of continued volatility tied to geopolitical developments and global economic performance. Investors have increasingly turned to the metal as a hedge against potential currency debasement and persistent inflation risks in major economies.
