Gold Sets New Record Amid U.S. Rate-Cut Expectations
Gold reached a fresh all-time high on Monday, buoyed by growing optimism over the U.S. monetary-policy outlook and ahead of key inflation data that could give the Federal Reserve more room to lower interest rates. At the same time, silver jumped to its highest level in more than nine years, driven by strong buying in the precious-metals market.
Key Market Moves
- Gold rose 0.9% to $3,719.95 per ounce, surpassing last week’s peak that followed the Fed’s first rate cut since December.
- Precious metals, which pay no yield, benefit when lower interest rates reduce the opportunity cost of holding them.
- Silver rallied to $43.77 per ounce, supported by exceptional activity in the options market. Momentum also extended to platinum and palladium, reflecting strong investor appetite for industrial metals.
Investors are watching this week’s economic data from Europe and Friday’s U.S. Personal Consumption Expenditures (PCE) price index—the Fed’s preferred inflation gauge—which is expected to show slowing growth and could strengthen the case for monetary easing. Fed Chair Jerome Powell is also set to speak on Tuesday about the economic outlook.
Markets are currently pricing in two additional rate cuts this year, helping push gold up more than 40% since the start of 2025. Geopolitical tensions, tariffs from President Donald Trump’s administration, central-bank purchases, and rising holdings in exchange-traded funds have all added to demand for the metal.
Data show that the SPDR Gold Trust, the world’s largest gold-backed ETF, increased its holdings last week to 976.8 metric tons from 974.8 tons, highlighting continued accumulation by central banks and investors as a hedge against dollar volatility and persistent inflation.
Gold thus continues to benefit from a rare combination of expected further monetary easing, sustained official demand, and safe-haven buying—cementing its role as one of the standout winners in today’s global economic landscape.
These developments confirm that gold and silver remain at the heart of global investment strategies, capitalizing on economic uncertainty and bets on further monetary easing, reinforcing their status as key hedging and safe-haven assets amid ongoing geopolitical and financial volatility.