WASHINGTON (dpa-AFX) - Gold rallied on Monday, recouping a portion of the losses suffered on Friday in the aftermath of President Trump raising doubts about a prolonged trade war with China. Concerns about the U.S. economy and expectations of further easing by the Federal Reserve helped restore demand for the yellow metal, boosting prices.
President Trump's comments on Friday had dampened safe haven demand for gold and spurred risk appetite dragging down prices more than 2 percent.
The CME FedWatch tool that tracks the expectations of interest rate traders shows the likelihood of a quarter percentage rate cut by the Federal Reserve on October 29 at 98.9 percent. The strong rate cut expectations supported sentiment for the yellow metal.
Gold Futures for December settlement gained 1.3 percent overnight to trade at $4,269.91, versus the previous close of $4,213.30. The day's trading range has been between $4,289.50 and $4,230.19 as compared with the 52-week trading that ranged between $2,541.50 and $4,392.00.
With today's addition, weekly gains stand at 3.3 percent and monthly gains add up to 15.2 percent. Amidst year-to-date gains of close to 62 percent, the price surge over the 3-year horizon is now almost 159 percent.
Spot Gold rallied 0.12 percent overnight to trade at $4,255.10 per troy ounce. The day's trading range has been between $4,219.17 and $4,271.02. Spot Gold had ranged between $2,536.91 and $4,379.44 over the past 52 weeks.
At current prices, Gold Futures has gained more than 57 percent and Spot Gold has gained more than 56 percent over the past year.
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