Gold prices rose slightly on Monday, supported by the prospect of a US interest rate cut in the coming period, while investors await the release of US inflation data and US-China trade talks this week to determine the future direction of the markets.
Spot gold rose 0.3% to $4,264.49 per ounce, after falling about 1.8% on Friday, its largest drop since mid-May.
Despite Friday's sharp decline, gold still recorded its best weekly performance since April, having earlier risen to an all-time high of $4,378.69 per ounce.
US gold futures for December delivery rose 1.5% to $4,280.30 per ounce.
Spot silver also rose 0.5% to $52.08 per ounce, after falling about 4.4% in the previous session, its largest drop since early April, after hitting an all-time high of $54.47 per ounce.
Non-yielding gold continues to rise by more than 60% since the beginning of the year, supported by geopolitical tensions and strong bets on US interest rate cuts, along with central bank buying, a sell-off of the dollar, and strong inflows into exchange-traded funds.
Gold fell sharply on Friday after Trump declared that his proposed 100% tariffs on Chinese goods would not be sustainable, adding that he would meet with Chinese President Xi Jinping and believed things would be fine with China.
HSBC on Friday predicted that rising gold prices would push them to $5,000 per ounce in 2026, driven by rising risks and the impact of new players entering the market.
As for other precious metals, platinum fell 1.1% to $1,591.55 per ounce, and palladium fell 0.5% to $1,467.16 per ounce.
