At the close of trading on 1/9, the spot gold price increased by 31 USD, or 0.9%, to 3,477 USD per ounce. This is the highest level for the precious metal since the end of April.

Global gold prices surged in the 1/9 session. Chart: Kitco

The rise in gold prices is attributed to investor anticipation of the Federal Reserve (Fed) cutting interest rates in September and a weakening USD. The Dollar Index, which measures the strength of the greenback, stood at 97.7 points, its lowest since 28/7. This makes USD-denominated gold cheaper for international investors.

In addition to gold, spot silver also rose 2.6% to 40.7 USD per ounce, its highest since 9/2011.

"Gold, and especially silver, continued their strong rally from the end of last week, thanks to persistent inflation in the US, weakening consumer confidence, expectations of an interest rate cut, and concerns about the Fed's independence," said Ole Hansen, Head of Commodity Strategy at Saxo Bank.

According to data released last week, the US Personal Consumption Expenditures (PCE) index increased by 0.2% compared to the previous month and 2.6% year-on-year, as forecast.

In a social media post last week, Mary Daly, President of the San Francisco Fed, reiterated her support for lowering interest rates due to risks to the labor market. Gold typically benefits in a low interest rate environment.

"The market is watching the US jobs report due out on Friday, hoping this data will pave the way for the Fed to resume its interest rate cutting cycle from September, thereby supporting investment demand," said UBS analyst Giovanni Staunovo.

Trong Hieu (according to Reuters, Kitco)