Gold jumps to record high in spot transactions It continued its gains, rising by about 1% to exceed $3,718 per ounce.

 

Gold bullion

Gold jumps to record high in spot transactions

It continued its gains, rising by about 1% to exceed $3,718 per ounce.

Gold rose to a record high on Monday, as investors awaited a series of speeches from Federal Reserve officials and inflation data this week, after the central bank cut interest rates last week and signaled the possibility of further cuts.

Spot gold rose about 1% to $3,718.56 per ounce by 10:22 Riyadh time, after hitting a record high of $3,707.40 last Wednesday.

US gold futures for December delivery rose 0.9% to $3,739.20.

"Gold is back nearing $3,700, and we could see new highs this week if US macro data continues to provide signals that the Federal Reserve will continue to cut rates further," said Tim Waterer, senior market analyst at KCM Trade.

Markets are currently focused on the release of the core personal consumption expenditures index on Friday. The index is the Federal Reserve's preferred measure of inflation.

"The combination of the Federal Reserve's dovish stance and continued demand from central banks is giving gold momentum," Waterer added.

At least 12 Federal Reserve officials are scheduled to speak this week, including Chairman Jerome Powell on Tuesday, as investors await further clues on monetary policy direction.

The Federal Reserve cut interest rates by 25 basis points last Wednesday, warning of persistent inflation pressures, raising doubts about the next pace of easing.

New Federal Reserve Board member Stephen Miller defended his independence as a policymaker on Friday after he dissented from the decision to cut interest rates further at Wednesday's meeting.

Investors widely expect two additional rate cuts this year, each of 25 basis points, in October and December, with probabilities of 93% and 81%, respectively, according to the FedWatch tool.

Gold, which often benefits from lower interest rates, has risen more than 40% since the beginning of the year, driven by geopolitical and economic uncertainty, central bank buying, and monetary easing.

Spot silver rose 0.3% to $43.20 an ounce, approaching a 14-year high. Platinum fell 0.4% to $1,398.40, and palladium rose 0.1% to $1,150.75.