Gold Prices Rise as Investors Await US Fed's Interest Rate Guidance

Gold prices edged up slightly on Monday as investors wait for key U.S. economic data this week that could shape Federal Reserve policy on interest rates. The precious metals market is showing mixed signals, with spot gold gaining while December futures dipped.

By 0256 GMT, spot gold rose 0.1% to $4,083.92 per ounce. But December gold futures fell 0.2% to $4,085.30 per ounce, showing the market's uncertainty about near-term direction.

The small gain comes as traders position themselves ahead of economic reports that could influence the Fed's next moves on borrowing costs. Higher interest rates typically hurt gold since the metal doesn't pay dividends or interest, making it less attractive compared to bonds or savings accounts.

Other precious metals performed better than gold. Silver jumped 0.8% to $50.96 per ounce, while platinum climbed 0.7% to $1,552.36. Palladium led the gains with a 1.7% increase to $1,408.13.

The stronger performance in silver and industrial metals like platinum and palladium suggests some optimism about economic demand. These metals have more industrial uses than gold, so their prices often reflect expectations about manufacturing and economic growth.

For investors, this week's U.S. data will be crucial. The numbers could either support the case for more aggressive Fed rate cuts or signal that the central bank might slow down its easing cycle. Gold has benefited from expectations of lower rates, but any surprise in the economic data could quickly shift market sentiment.