Gold Extends Rally as Softer Dollar and Yields Lift Precious Metals

Key Moments

Gold Rallies as Dollar and Yields Ease

Gold prices rose in Asian trade on Monday, extending gains from the previous session. Earlier, the metal had touched a near two-month high. This move followed a weaker U.S. dollar and lower Treasury yields.

At the same time, less hawkish signals from the Federal Reserve helped lift sentiment across precious metals. As a result, silver and platinum moved higher alongside gold.

By early European trading, spot gold held near $4,343 per ounce. Meanwhile, March futures traded close to $4,376. In addition, silver remained near record levels, while platinum continued to firm.

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Fed Signals Boost Safe-Haven Demand

Last week, precious metals gained momentum after the Federal Reserve cut interest rates. In addition, the central bank said it would begin buying short-dated Treasuries from December.

These steps signaled a more accommodative policy stance. Historically, such conditions have supported gold by improving liquidity and lowering opportunity costs.

However, the Fed’s actions also raised questions about the strength of the U.S. economy. As a result, demand for safe-haven assets increased.

Focus Shifts to U.S. Jobs and Inflation Data

Now, investor attention is turning to two key U.S. releases: nonfarm payrolls and November consumer price inflation.

Previously, the payrolls report was delayed by a prolonged government shutdown. Consequently, markets have had limited official labor data in recent weeks.

Going forward, traders will look for signs of cooling job growth and easing inflation. These indicators remain central to the Fed’s rate-cut outlook.

Overall, the upcoming data should help clarify policy expectations after recent reporting disruptions.