Gold jumps 3.5%, settles near $4,360

Gold bars

Gold prices rose sharply on Monday, supported by expectations that the US Federal Reserve will cut borrowing costs this month, as investors also awaited the outcome of trade talks between the United States and China.

December gold futures climbed 3.46%, or $146.1, to settle at $4,359.4 an ounce, marking the 49th record close for the most active contract so far in 2025.

The gain followed a more than 2% drop on Friday after US President Donald Trump said he was not seeking to harm China.

Trump said earlier on Monday that he expects to reach a “fair” trade agreement with China in the coming period, though caution over the outcome of the next round of negotiations continues to weigh on investor sentiment.

Meanwhile, the US government shutdown entered its 20th day amid a partisan dispute over spending priorities.

Kevin Hassett, Director of the National Economic Council, told CNBC he expects the shutdown to end this week, adding that the Trump administration may resort to stricter measures if the political impasse persists.