Gold prices remain near record highs ahead of key Fed policy meeting

Investing.com-- Gold prices traded largely unchanged Monday, remaining close to record highs after gaining for a fourth straight week, underpinned by growing expectations that the U.S. Federal Reserve will cut interest rates later this week. 

At 08:00 ET (12:00 GMT), Spot gold traded basically flat at $3,643.30 per ounce, not far from an all-time high of $3,673.95 touched last week, and U.S. Gold Futures ticked 0.2% lower to $3,680.70/oz.

The metal has surged nearly 40% so far this year amid increased safe-haven demand due to President Donald Trump’s trade policies as well as central bank buying.

Gold near record highs as Fed decision looms

The bullion market has traded with a degree of caution Monday, with the Fed expected to confirm an interest rate cut at the conclusion of its two-day policy meeting on Wednesday. Traders now see over a 96% chance of a 25 basis point cut, with some bets on a larger move.

Markets grew more confident of easing after large revisions to official jobs figures reinforced signs of a cooling labour market. 

The softer employment backdrop overshadowed a slightly hotter August consumer price index, with Fed officials seen likely to prioritize signs of labor market weakness.

Gold is particularly sensitive to interest rate expectations, as lower rates reduce the opportunity cost of holding the non-yielding asset while typically weighing on the dollar. 

Despite gold being near record levels, managed money net longs in COMEX gold decreased by 2,445 lots, according to the latest positioning data from the CFTC as of Sept. 9, after reporting gains for two straight weeks to 166,417 lots over the reporting week. 

Copper edges higher despite weak Chinese data

Other precious metals were subdued.

Silver futures edged 0.3% lower to $42.682 per ounce, while platinum futures dropped 0.5% to $1,405.40/oz.

Benchmark Copper futures on the London Metal Exchange gained 0.1% to $10,079.60 a ton, while U.S. Copper Futures edged up 0.3% to $4.6650 a pound.

Data from China – the world’s largest copper importer – showed on Monday that the country’s industrial production rose at the slowest pace in a year, falling short of expectations. Chinese retail sales figures also slowed from the previous month, missing market estimates.

Meanwhile, recent Shanghai Futures Exchange data shows that weekly inventories for most of the base metals rose over the reporting week.

Copper stocks rose by 12,203 tonnes for a second consecutive week to 94,054 tonnes as of last Friday, the highest since the week ending on 20 June 2025.

Ayushman Ojha contributed to this item