Gold prices rose on Monday, supported by a decline in US Treasury yields, while silver prices stabilized after hitting a record high last week.
Gold rose 0.6% in spot trading to $4,328.73 an ounce, after hitting its highest level since October 21 on Friday.
Gold’s gains have thus exceeded 64% since the beginning of the year, achieving a number of record highs, making it one of the best performing assets in 2025.
US gold futures also rose 0.7% to $4,359.50 an ounce on Monday.
Yields on 10-year US Treasury bonds have declined slightly, boosting the appeal of gold, which does not yield returns.
The Federal Reserve cut interest rates by 25 basis points for the third time this year on Wednesday, but expressed caution about implementing further cuts, given continued inflationary pressures and an uncertain labor market outlook.
Two Federal Reserve officials, opposing a cut in interest rates, said that inflation was still too high to justify reducing borrowing costs, citing a lack of recent official data on the pace of price increases.
Investors currently expect two interest rate cuts next year, while the U.S. non-farm payrolls report, due next week, may provide further clues about the future course of monetary policy.
Non-yielding assets, such as gold, typically tend to make gains in an environment characterized by low interest rates.
Silver prices
As for other precious metals, the price of silver in spot transactions settled at $62.02 an ounce, after hitting a record high of $64.64 on Friday, before closing sharply lower.
Silver prices rose by about 6% last week, bringing their gains since the beginning of the year to 115%, supported by declining inventories, strong industrial demand, and their inclusion on the list of critical biometallurgical metals in the United States.
In contrast, the price of platinum in spot trading fell 0.2% to $1,741.82, while palladium rose 0.4% to $1,493.40 an ounce.
