The price of spot gold rose by 2% on Monday, mainly due to market expectations regarding a new interest rate cut by the Federal Reserve (FED) and ongoing support from safe-haven purchases, while investors are closely following developments in trade relations and U.S. inflation data that will be released this week. Jeffrey Christian, managing partner of the CPM Group, stated: "After the strong sell-off last Friday, political and economic concerns have once again driven up the price of gold. We expect that the price of gold will continue to rise over the coming weeks and even months, and it would not be surprising if it soon reaches the $4,500 threshold." The U.S. federal government has been at a standstill for 20 days, and the Senate failed to break the deadlock for the tenth time last week. This shutdown has led to the postponement of several key economic data points, plunging investors and policymakers into a data void ahead of the FED's policy meeting next week. The U.S. consumer price index data, which are affected, is expected to be released this Friday. Currently, traders estimate that the probability of a rate cut by the FED next week is 99%, with another cut expected in December.
