Gold rises 1.5% on US rate-cut hopes

Gold bars

Gold prices extended gains in the week’s first session as investors awaited key US inflation data and renewed trade negotiations with China to gauge market trends.

On Monday, December gold futures gained 1.55%, or $65.90, to $4,279.20 an ounce after touching $4,289.90 earlier in the session.

Spot gold ticked up 0.25%, or $9.73, to $4,261.55 an ounce, while spot silver climbed 0.55% to $52,1965.

The US dollar index — which tracks the greenback against six major currencies — was little changed at 98.43 points as of 8:06 am KSA time.

December silver futures jumped 1.65% to $50.95 an ounce. Platinum spot prices fell 1.5% to $1,594.67, while palladium gained 1.75% to $1,475.37.

Economists expect the US core inflation to be steady at 3.1% in September. Markets expect a 25-basis-point rate cut by the Federal Reserve this month, followed by another in December.