Gold prices edged higher in Asian trading on Monday, staying close to last week’s record highs as expectations of further U.S. interest rate cuts following the Federal Reserve’s recent 25-basis-point reduction supported bullion demand.

Investors remained focused on gold ahead of several major U.S. economic releases this week, including the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index. However, some strength in the U.S. dollar, which has rebounded from its lowest levels in more than three and a half years, kept gold from hitting fresh record peaks.

Spot gold increased 0.3% to $3,697.70 per ounce, while gold futures rose 0.7% to $3,733.10/oz as of 01:33 ET (05:33 GMT). Last week, spot gold reached a high of $3,707.70/oz.

Record Levels Backed by Rate-Cut Sentiment

Gold’s recent surge followed the Fed’s widely anticipated rate cut, aimed at addressing rising risks to the labor market. Officials indicated that additional reductions could be possible in the coming months if signs of labor market weakness persist, though inflation concerns—particularly from higher trade tariffs—remain on the central bank’s radar.

Markets currently expect at least another 50-basis-point drop in interest rates this year, according to CME FedWatch data. Lower rates tend to benefit non-yielding assets like gold, as they reduce the opportunity cost of holding bullion. Other metals also saw gains following the Fed’s move.

Spot platinum climbed 0.8% to $1,419.90/oz on Monday, while spot silver rose 1.3% to $43.6495/oz. Among industrial metals, London Metal Exchange copper futures increased 0.1% to $10,001.10 a ton, and COMEX copper rose 0.1% to $4.6315 per pound.

Key U.S. Economic Data and Fed Commentary This Week

Attention this week is on key U.S. economic indicators that may influence expectations for future rate cuts. Several Fed officials are scheduled to speak, most notably Chair Jerome Powell on Tuesday.

Friday will see the release of the PCE price index for August, with core PCE inflation expected to remain above the Fed’s 2% annual target. Additional data this week include preliminary purchasing managers’ index readings for September and the final GDP growth figure for the second quarter.

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