WASHINGTON (dpa-AFX) - Gold futures settled notably higher on Monday, gaining for a second straight session, amid continued optimism about an interest rate cut by the Federal Reserve next week.
Resumption of gold purchases by China's central bank contributed as well to gold's upside.
A largely subdued dollar, and lingering geopolitical tensions too supported the safe-haven yellow metal.
The dollar index dropped to 105.80 around late morning before recovering to 106.05.
Gold futures for December closed up $26.30 or about 1% at $2,664.90 an ounce.
Silver futures for December settled at $32.216 an ounce, gaining $1.0300 or about 3.3%, the largest single session gains in dollar as well as percentage terms in almost two months.
Copper futures for December climbed to $4.2210 per pound, gaining $0.0825 or nearly 2%.
On Sunday, the anti-government rebels announced full control of Homs, the third main city in the nation, and the capital Damascus after Syrian President Bashar al-Assad fled the country, ending a fifty-year regime.
Russian media reported that the ousted President had been granted asylum in Moscow on humanitarian grounds.
Traders await the release of U.S. consumer price inflation and producer prices data this week for clues about the Federal Reserve's interest rate trajectory.
Traders currently price in an 87% chance of a 25-basis-point interest rate cut at next week's Fed meeting, up from 61.6% last week, according to the CME Group's FedWatch Tool.
The European Central Bank and the Swiss National Bank are scheduled to announce their rate decisions this week.
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