Gold prices traded near their highest levels in seven weeks during Asian trading on Monday, supported by growing expectations of United States interest rate cuts next year and increased demand for safe-haven assets ahead of key U.S. employment data.
Spot gold rose 0.6% to US$4,326.93 an ounce by 3:50 pm AEDT, lifting the precious metal above the US$4,325 level as buying momentum continued.
The advance comes as markets increasingly price in the prospect of policy easing by the U.S. Federal Reserve in 2026.
The Fed also said it would begin buying US$40 billion of Treasury bills each month, signalling a willingness to support liquidity as growth momentum cools.
Safe-haven demand has contributed to the move higher, with investors remaining cautious amid ongoing economic uncertainty and a more risk-averse market tone.
However, gains could be tempered by recent hawkish comments from Federal Reserve officials, which have supported the U.S. dollar and could weigh on dollar-denominated commodities.
Further insight into the policy outlook is expected from speeches later on Monday by Fed Governor Stephen Miran and New York Fed President John Williams.
Attention will then shift to the U.S. employment report due on Tuesday (Wednesday AEDT), covering Nonfarm Payrolls, average hourly earnings and the unemployment rate for October and November.
The delayed data is expected to provide clearer signals on labour market conditions and could play a key role in shaping expectations ahead of the Federal Reserve’s January meeting.
