Mumbai: Gold prices held firm on Monday as growing hopes of a United States interest rate cut helped balance the impact of a stronger dollar. The metal traded around 4065 dollars an ounce in the global market, showing little movement but remaining supported by expectations that the US Federal Reserve may ease its policy soon.

Market analysts said traders are watching every signal from the Federal Reserve. The chance of a rate cut next month has risen sharply to more than seventy percent after comments from New York Federal Reserve President John C Williams, who noted signs of a slowing labour market. Investors believe this could give the central bank room to reduce borrowing costs earlier than expected.

A stronger dollar has limited bigger gains for gold. The currency is near its six month high, making gold more expensive for buyers using other currencies. Even so, rate cut hopes kept the metal supported.

Silver also showed a small increase and traded around fifty dollars an ounce, while platinum and palladium recorded stronger gains. Analysts say demand trends in China, global political tensions and further statements from US officials will guide the direction of precious metals in the coming days.

Traders now look ahead to upcoming US economic data, which will shape expectations for next month’s Federal Reserve meeting. Many believe that if the labour market continues to soften and inflation remains stable, gold could find more support in the coming weeks.