Gold prices pushed higher on Monday, inching closer to the $3,700 mark as last week’s weak US jobs data strengthened expectations that the Federal Reserve will cut rates at its September meeting.
Spot gold (XAU/USD) was trading at $3,611.29 an ounce by 09:55 GMT, while futures were at $3,653.00. Traders have fully priced in a 25-basis-point cut, with CME FedWatch showing an 8% chance of a larger 50-point move.
August payrolls showed slowing job growth and unemployment climbing to a near four-year high of 4.3%, reinforcing the case for easier policy. Several analysts now see scope for gold to test $3,700 unless this week’s US inflation report delivers a surprise to the upside.
Gold’s advance has been underpinned by dollar weakness, central bank demand, and heightened economic and geopolitical risks. China’s central bank extended its bullion buying streak into a tenth straight month in August, while speculative net longs jumped by more than 20,000 contracts to 168,862.
The metal has already surged 37% this year after rising 27% in 2024, fuelled by a softening monetary backdrop and fears over global fiscal health.