Gold prices continued to increase in the third session, hitting a more than a weekly high despite the stronger US dollar, after "universe" statements from US Federal Reserve (FED) officials raised expectations of the Fed cutting interest rates in December.
Spot gold rose 0.1% to $4,141.49 an ounce at 06:30 GMT, its highest level since November 14, following a 1.8% increase in the second session.
US gold futures for December increased 1.1%, to 4,139.10 USD/ounce.
Gold prices are currently largely driven by expectations of a rate cut. Over the past two weeks, as this expectation has increased rapidly, it has caused gold prices to recover in the short term," said Kelvin Wong, senior market analyst at OANDA.
Investors are now paying special attention to US economic data on demand, to see whether the Feds concerns about weak demand which may come from the labor market, retail sales or consumer confidence are greater than concerns about persistent inflation, he added.
Fed Governor Christopher Waller said on Monday that the US labor market is weak enough to justify a further 0.25 percentage point interest rate cut in December, although further steps will depend on a series of upcoming economic data, which has been delayed due to the recent government shutdown.
Waller's comments came after New York Fed Chairman John Williams said on Friday that US interest rates could fall in the short term.
According to the CME FedWatch tool, investors are now pricing in an 81% chance of a Fed rate cut in December, up sharply from 40% just a week ago.
Gold an unyielding asset is often moving positively in a low-yielding environment.
Important economic data delayed by the US government shutdown, including retail sales, jobless claims and the Producer Price Index (PPI), are expected to be released this week, and are expected to clarify the Fed's rate cut roadmap.
USD Index remains firmly close to the six-month high reached last week, somewhat limiting the increase in USD-denominated gold prices.
In other precious metals, spot silver prices are steady at $51.43/ounce, while platinum has increased by 0.7% to $1,553.65/ounce and palladium has increased by 0.3% to $1,399.96/ounce.
