Gold trades over a three-month high early Monday on a weaker dollar after last week’s announcement by the U.S. Treasury Department that it will ramp up buybacks of long-dated government debt.
Declines in the dollar are typically bullish for gold, making the yellow metal a more attractive investment to holders of other currencies. Bullion prices also rallied amid increasing expectations that the Federal Reserve will keep interest rates unchanged again in September, even though minutes of the last Fed policy meeting, which came out last week, indicated broader support for rate increases if inflation doesn’t go down.
The Fed’s favorite inflation measure, the personal consumption expenditures price index, is scheduled for release Wednesday and will give the latest snapshot on the state of the economy.
December gold futures rose 5.5% last week to settle at $4,680.60 an ounce on Comex after the front-month contract rallied 2.4% Friday. Bullion is up 14% this month after gaining 1.7% in July, its first monthly increase since February, and sliding 12% in June. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently up $47.90 (+1.02%) an ounce to $4728.50 and the DG spot price is $4667.40.
Billionaire Ray Dalio said in a LinkedIn post Friday that investors should trim their bond holdings and put as much as 15% of their money in gold to hedge against a possible U.S. debt crisis, Bloomberg reported.
Investors are also continuing to watch inflationary risk from the war in Iran and the subsequent closure of the Strait of Hormuz. But they are increasingly betting that the Fed will hold interest rates unchanged in September after a series of economic reports showed that inflation hasn’t ramped up as fast as had been anticipated. The Fed closely watches both inflation and labor market data when setting monetary policy. Keeping rates unchanged would likely be bullish for gold, as higher rates make gold a less attractive asset for investment.
The central bank held interest rates steady at 3.5% to 3.75% last month, but dissenters signaled growing support for a rate hike in 2026. The Fed had previously been expected to raise rates next month. Higher rates are typically bearish for gold, making the yellow metal a less attractive asset.
More than 59% of the investors tracked by the CME FedWatch Tool now expect rates will remain unchanged at the Fed’s next policy meeting in September, with the rest betting on a 25 basis point increase. The Fed has kept interest rates unchanged this year after three previous rate cuts.
Front-month silver futures gained 8.1% last week to settle at $70.35 an ounce on Comex as the most-active contract rolled to December from September. December futures increased 2.1% Friday. The most-active contract touched a record above $115 in January. Silver is up 22% this month after sliding 3.6% in July and declining 21% in June. It lost 15% in the first half of 2026 after rising 141% last year. The December contract is currently down $0.684 (-0.97%) an ounce to $69.665 and the DG spot price is $69.01
Spot palladium rallied 1.6% last week to $1,348.50 an ounce after rising 0.9% Friday. Palladium is up 4.6% this month after adding 5.8% in July and dropping 11% in June. It retreated 25% in the first half of 2026 after rising 74% last year. The DG spot price is currently up $10.80 an ounce to $1364.00.
Spot platinum increased 7.5% last week to $1,888.30 an ounce after rising 3.1% Friday. Platinum is up 14% this month after gaining 6.6% in July and tumbling 19% in June. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The current DG spot price is up $3.80 an ounce to $1891.50.
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