Gold prices surge to highest level since April on Fed rate cut hopes

WEB DESK: Gold is on a hot streak again. The precious metal climbed to a more than four-month high on Monday, riding on growing expectations that the US Federal Reserve will cut interest rates later this month. Silver, not to be left behind, broke past the $40 mark for the first time in over a decade.

By 0238 GMT, spot gold had gained 0.7 percent to $3,470.69 per ounce, its highest since late April. US gold futures for December delivery added 0.8 percent, reaching $3,543.70. Silver jumped 1.6 percent to $40.31, a level last seen in September 2011.

Traders eye rate cut and court ruling

So what’s fuelling the shine? A mix of politics, policy, and market nerves. Traders brushed aside Friday’s higher core PCE inflation reading after San Francisco Fed President Mary Daly doubled down on her support for a rate cut, pointing to risks in the labour market. Lower rates tend to make non-yielding assets like gold more attractive.

On top of that, a US appeals court ruling that deemed most of Donald Trump’s tariffs illegal has put further pressure on the dollar. A weaker dollar usually works in gold’s favour, since it makes the metal cheaper for overseas buyers.

At the moment, markets are betting big: there’s an 87 percent chance of a quarter-point rate cut this month, according to the CME FedWatch tool. All eyes are now on Friday’s non-farm payrolls report, which could decide just how far the Fed is willing to go.

Elsewhere in metals, platinum rose 0.9 percent to $1,376.95, while palladium climbed 0.8 percent to $1,118.12.

Pakistan sets its own record

While global markets were buzzing, Pakistan had a milestone of its own. Gold prices in the country hit an all-time high over the weekend. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), 24-karat gold surged by Rs3,600 on Saturday, taking the per tola price to a record Rs367,400.

This leap pushed past the previous high of Rs363,700 per tola set in April. The rise also sealed August as a bullish month. Gold was trading at Rs353,000 per tola at the end of July, meaning the metal gained Rs14,400 over the month.

The rally reflects a mix of local demand and the global push that has kept bullion markets on edge. For now, gold continues to glitter as one of the few safe bets in an uncertain world.

Read next: Oil trades in tight range amid Russia-Ukraine strikes, demand concerns