REUTERS

Gold hit a more than four-month high on Monday to trade around $30 shy of all-time highs, buoyed by US Federal Reserve rate cut bets and a softer dollar, while silver breached $40 per ounce for the first time since 2011.

Spot gold was up 0.7 percent at $3,469.84 per ounce by 1049 GMT, its highest since April 22 when it touched a record-high of $3,500.05. US gold futures for December delivery gained 0.8 percent to $3,542.80.

The US dollar was trading near its lowest since July 28 against rivals, making greenback-priced bullion cheaper for overseas buyers.

“Gold, and especially silver, extended Friday’s strong gains, supported by sticky US inflation, weakening consumer sentiment, (expected) rate cuts ... and concerns over Fed independence,” Saxo Bank’s head of commodity strategy, Ole Hansen, said.

The US personal consumption expenditures price index rose 0.2 percent month-on-month and 2.6 percent year-on-year, in line with expectations, data showed on Friday.

“Silver is making a move higher in response to expectations of lower rates, while a tight supply market is helping to maintain an upward bias,” KCM Trade’s chief market analyst, Tim Waterer, said.