Gold prices remained near record highs on Monday, driven by a weaker dollar and comments from U.S. Federal Reserve Chair Jerome Powell suggesting potential interest rate cuts. Spot gold rose by 0.6% to $2,524.30 per ounce, just $7 below last week’s record high of $2,531.60. U.S. gold futures also increased by 0.6% to $2,560.40.
The dollar fell to its lowest point in over a year, which made gold cheaper for holders of other currencies. Additionally, benchmark 10-year Treasury yields decreased. Powell’s comments on Friday hinted at possible rate cuts, with upcoming economic data likely influencing the timing and extent of these cuts. This has fueled expectations of a September rate cut.
In India, gold demand is expected to be strong during the upcoming festive season. A substantial reduction in import duties has made gold prices more appealing to buyers. This seasonal boost in demand is anticipated to support gold prices further.
Silver prices increased by 1% to $30.1, though its rise has been limited by slower global industrial production. Platinum also rose by 1% to $972.45, while palladium dropped slightly by 0.3% to $959.75.
