SINGAPORE: Gold prices edged higher at the start of the new trading week on Monday, while silver also recorded gains. Softer oil prices helped ease some inflation concerns, providing support to bullion, although investors remained focused on the US Federal Reserve’s upcoming interest rate decision.
Spot gold rose 0.4% to $4,009.87 per ounce by 0342 GMT on Monday. The metal had touched its lowest level since mid-July in the previous trading session.
US gold futures for December delivery also gained 0.4%, reaching $4,023.50 per ounce.
Silver, Platinum and Palladium Prices
Elsewhere in the precious metals market, spot silver climbed 0.6% to $54.19 per ounce.
Platinum prices remained steady at $1,551.31 per ounce, while palladium advanced 0.6% to $1,050.50 per ounce.
Gold Recovers After Sharp Weekly Decline
Despite Monday’s modest recovery, gold had suffered a significant setback in the previous week. Bullion recorded a 4% weekly decline on Friday, marking its steepest weekly fall since June.
Market participants are now closely monitoring the Federal Reserve’s monetary policy outlook and upcoming inflation data. Expectations surrounding US interest rates remain a key factor influencing demand for gold and other precious metals, as higher interest rates tend to reduce the appeal of non-yielding assets.
With the Fed’s policy decision approaching, investors are likely to remain attentive to signals about the future direction of interest rates and their potential impact on the precious metals market.
