WASHINGTON (dpa-AFX) - Gold prices rose sharply to hit a two-week high on Monday as signs of a weakening U.S. economy fueled rate cut bets.
A weaker dollar on optimism that the U.S. government could end soon also buoyed safe-haven demand for the precious metal.
Spot gold was up nearly 2 percent at $4,078.47 an ounce, while U.S. gold futures jumped 1.9 percent to $4,086.45.
Recent data has revealed the fragility of the U.S. economy. U.S. companies announced 153,074 job cuts in October, nearly tripling September's 54,064, Challenger, Gray & Christmas said in a report last week.
It was said the surge in layoffs reflected cost-cutting and the growing use of artificial intelligence by businesses.
A survey released on Friday showed that U.S. consumer sentiment weakened to its lowest level in nearly three-and-a-half years in early November amid economic concerns.
According to the CME FedWatch Tool, traders now assign a 7 percent probability to a rate cut in December.
The dollar was under pressure in European trade after the United States moved one step closer towards ending the historic government shutdown.
The U.S. Senate voted 60-40 to end the longest-running government shutdown, which entered its 40th day on Sunday.
The bipartisan legislation, which would fund most federal agencies through January and guarantee back pay for federal employees affected by the closure, would now go to the House of Representatives for consideration.
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