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Gold jumps to 4-month high, silver shines
Gold rose to its highest level in more than four months on Monday, September 1, supported by increased bets on a Federal Reserve interest rate cut this month, boosting the precious metal's appeal. Silver also climbed above $40 per ounce for the first time in more than a decade.
Spot gold rose 0.8% to $3,477.39 per ounce, its highest level since April 23. U.S. gold futures for December delivery also rose 0.8% to $3,545.50.
Spot silver rose 2.11% to $41.05 per ounce, its highest level since September 2011.
Matt Simpson, senior analyst at City Index, said, "Dovish comments from San Francisco Fed President Mary Daly helped traders overcome Friday's strong core inflation data and kept the door open for a 25 basis point rate cut this month."
He added, "A US appeals court's decision to deem most of President Donald Trump's tariffs illegal also contributed to pressure on the US dollar and pushed gold to a four-month high."
Data showed that the US personal consumption expenditures price index rose 0.2% month-on-month and 2.6% year-on-year, both readings in line with expectations.
US Interest Rates
Daly reiterated her support for a rate cut in a social media post on Friday, given the risks threatening the labor market.
Traders are currently pricing in an 87% probability of the Fed cutting interest rates by 25 basis points later this month, according to the CME FedWatch tool. Gold, which does not yield a return, often benefits from a low interest rate environment.
