Gold consolidates after record rally, focus on US-China talks
Gold prices inched higher on Monday after a record rally, supported by expectations of more U.S. rate cuts and safe-haven demand linked to the government shutdown in Washington, while investors awaited cues from upcoming U.S.-China trade talks.
Spot gold was up 0.3% at $4,259.84 per ounce, as of 0951 GMT. U.S. gold futures for December delivery climbed 1.5% to $4,275 per ounce.
Spot silver rose 0.5% to $52.12, recovering slightly after falling 4.4% on Friday after hitting a record high of $54.47 earlier that day.
"We're holding well above $4,000 in gold and $50 in silver, and as long as we do that I do not expect any major amount of long liquidation coming into the market," said Ole Hansen, head of commodity strategy at Saxo Bank, adding that gold is still very bullish.
TRUMP'S 100% CHINA TARIFF THREAT, EXPECTED FED RATE CUT
The U.S. government shutdown is still adding some underlying support while the upcoming U.S.-China meeting will be a major focus, Hansen added.
U.S. President Donald Trump said on Friday that his proposed 100% tariff on goods from China would not be sustainable, adding that he would meet with Chinese President Xi Jinping in two weeks.
Gold, which has hit multiple record highs this year - most recently on Friday when it reached $4,378.69 - gained more traction last week after the U.S. threatened steep tariff hikes over China's rare-earth export controls. But it fell more than 1.8% on Friday following Trump's remarks.
The U.S. CPI data, which was delayed due to the ongoing U.S. government shutdown, will be released on Friday, days before the Fed's October 28–29 policy meeting. It is expected to show that core inflation held at 3.1% in September.
The U.S. Federal Reserve is widely expected to cut interest rates by a quarter percentage point again. FEDWATCH
Meanwhile, China's economic growth slowed to its weakest pace in a year in the third quarter.
"The weakness in the Chinese property market remains a key source of support for the gold market," Hansen said.
Elsewhere, platinum fell 0.9% to $1,595.85 per ounce and palladium dropped 1.4% to $1,452.89 per ounce.
Source: Reuters.com
