Gold consolidates after record rally

Gold prices inched higher on Monday after a record rally, supported by expectations of more US rate cuts and safe-haven demand linked to the government shutdown in Washington, while investors awaited cues from upcoming US-China trade talks, reports Reuters.

Spot gold was up 0.3 per cent at $4,2562.84 per ounce, as of 1139 GMT. US gold futures for December delivery climbed 1.6 per cent to $4,280.40 per ounce. Spot silver rose 0.3 per cent to $51.98, recovering slightly after falling 4.4 per cent on Friday after hitting a record high of $54.47 earlier that day.

"We're holding well above $4,000 in gold and $50 in silver, and as long as we do that I do not expect any major amount of long liquidation coming into the market," said Ole Hansen, head of commodity strategy at Saxo Bank, adding that gold is still very bullish. The US government shutdown is still adding some underlying support while the upcoming US-China meeting will be a major focus, Hansen added.