Gold rises on US rate cut bets; silver hits 14-year high

Gold rises on US rate cut bets; silver hits 14-year high

Gold prices surged on Monday, hitting a more than four-month high, as traders increased bets for a U.S. Federal Reserve interest rate cut later this month. Spot gold rose 0.7% to $3,470.69 per ounce, the highest since April 23. U.S. gold futures for December delivery gained 0.8% to $3,543.70 [1].

The rally in gold was driven by dovish comments from Federal Reserve Bank of San Francisco President Mary Daly, who reiterated her support for an interest rate cut due to risks to the labor market. Traders are currently pricing in an 87% chance that the Fed will ease rates by 25 basis points later this month, according to the CME FedWatch tool [1].

Silver also performed well, rising 1.6% to $40.31 per ounce, the highest since September 2011. The increase in silver prices was attributed to a combination of factors, including the anticipation of a Fed rate cut and strong demand for silver-backed exchange-traded products [2].

The focus now shifts to the U.S. non-farm payrolls data, due on Friday, which could determine the size of the Fed's expected rate cut later this month. Additionally, the U.S. Personal Consumption Expenditures (PCE) price index rose 0.2% month-on-month and 2.6% year-on-year, both in line with expectations [1].

Platinum and palladium also gained, with platinum rising 0.9% to $1,376.95 and palladium climbing 0.8% to $1,118.12 [1].

References:

[1] https://www.reuters.com/world/india/gold-rises-us-rate-cut-bets-silver-hits-14-year-high-2025-09-01/
[2] https://www.free-bullion-investment-guide.com/