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Silver reaches 14-year high on US rate cuts; gold rises as bets increase.

On Monday, gold reached a four-month high, thanks to increased bets on a U.S. Federal Reserve rate cut in this month. Silver also rose above $40 an ounce for more than a decade.

Gold spot rose 0.7% by 0238 GMT to $3,470.69 an ounce, its highest level since April 23. U.S. Gold Futures for December Delivery gained 0.8%, reaching $3,543.70.

Spot silver increased 1.6% to $40.31 per ounce, its highest level since September 2011.

Matt Simpson, senior analyst at City Index, said that Daly's dovish remarks helped traders look past the higher reading of core PCE on Friday and left the door open to a 25 basis-point cut this month.

The U.S. Dollar is gaining more strength today, as a U.S. court of appeals has ruled that most of President Donald Trump's tariffs are illegal. Gold also reached a four-month peak.

The U.S. The Personal Consumption Expenditures Index (PCE) rose by 0.2% on a monthly basis and 2.6% annually, in line with expectations.

Mary Daly, the president of the San Francisco Fed Bank, reiterated on Friday her support for a rate cut due to the risks facing the labor market.

According to CME FedWatch, traders are pricing in a 87% chance that the Fed will lower rates by 25 basis point later this month.

Gold that does not yield is usually a good investment in an environment with low interest rates.

The Fed will now be focusing on the non-farm payroll data due this Friday. This could determine the size and timing of its rate cut expected later in the month.

U.S. trade representative Jamieson Greer stated on Sunday that the Trump administration continues its discussions with trading partners, despite an appeals court ruling in the United States that the majority of Trump's tariffs were illegal.

Palladium rose 0.8% to 1,118.12 and platinum gained 0.9% at $1,376.95. (Reporting and editing by Sumana Nady, Subhranshu Sahu and Brijesh Patel in Bengaluru).

(source: Reuters)