AsianFin -- Gold prices held steady near record levels on Monday, as investors awaited the U.S. Federal Reserve's decision on interest rates in Washington, D.C. Spot gold was trading at $3,642.65 per ounce as of 6:06 GMT, following a 1.6% gain last week that saw prices reach a record high of $3,673.95 on Tuesday.

U.S. gold futures for December delivery declined slightly by 0.2% to $3,680.20. Market participants engaged in profit-taking while a stronger U.S. dollar exerted downward pressure on gold prices. The U.S. dollar index rose by 0.1%, making gold more expensive for overseas buyers.

Tim Waterer, Chief Market Analyst at KCM Trade, noted that despite the minor pullback, the bullish outlook for gold remains intact. He stated, "A period of consolidation or a minor pullback would arguably be a healthy outcome that supports gold's ambitions for hitting loftier price targets down the road."

Investors are anticipating a quarter-percentage-point rate cut by the Federal Reserve this Wednesday, despite U.S. inflation data for August coming in slightly above expectations. The Fed's meeting is occurring amid challenges including a legal dispute over its leadership and political pressures from U.S. President Donald Trump regarding interest rate policy.

Gold is often viewed as a safe-haven asset in times of uncertainty and tends to perform well in a low-interest-rate environment. However, Goldman Sachs cautioned that rising speculative positions could lead to tactical pullbacks, even as they maintain a mid-2026 forecast of $4,000 per ounce for gold.

Speculators reduced their net long positions by 2,445 contracts to 166,417 in the week ending September 9, 2025.

Other precious metals also saw modest gains on Monday, with spot silver up 0.1% at $42.20 per ounce, platinum rising 0.5% to $1,397.59, and palladium increasing 0.2% to $1,197.88.