Gold prices surge on Monday

Gold and silver surged on Monday, with gold hitting a six-week high and silver reaching a record level, as investors priced in a likely US interest rate cut and anticipated dovish shifts in Federal Reserve leadership.

Spot gold rose 0.3 per cent to $4,241.21 per ounce, while US December gold futures gained 0.5 per cent to $4,275.40. Silver climbed 1.3 per cent to $57.12 after earlier touching $57.86 per ounce.

Traders are increasingly betting on a December rate cut following softer US economic data and dovish comments from Fed officials, with markets pricing an 88 per cent chance of a reduction. Lower borrowing costs tend to boost demand for non-yielding metals.

The US dollar fell to a two-week low, further supporting bullion prices, while platinum and palladium rose 0.5 per cent and 0.2 per cent to $1,680.75 and $1,452.97 respectively. Analysts expect gold to reach $4,500 and silver $60 per ounce next year.

Attribution: Reuters