Gold prices continued to surged in Asian trading on Monday, edging closer to all-time highs as expectations of a September Federal Reserve rate cut and renewed safe-haven demand drove buying.
Spot gold (XAU/USD) was at $3,477.05 an ounce by 10:00 GMT.
The metal gained nearly 5% in August, buoyed by stronger wagers on a rate cut. The latest US personal consumption expenditures price index matched forecasts, reinforcing the view that inflation is cooling without derailing the case for looser policy.
Markets now price in close to a 90% chance of a 25 basis point reduction this month, according to CME FedWatch.
Focus will now shift to US jobs data later this week. A soft non-farm payrolls report would likely cement expectations of a September cut, while a stronger reading could temper them.
Trade policy uncertainty added to safe-haven flows after a US appeals court ruled many Trump-era tariffs illegal, though the measures remain in place until 14 October pending appeal.
Questions over the Fed’s independence also linger, with President Donald Trump attempting to dismiss Governor Lisa Cook last week. Cook has rejected the move and filed a lawsuit challenging her removal.