Gold Hits Record High on Fed Rate Cut Hopes

Gold prices surged to an all-time high on Monday, reaching $4,383.76, as investors grew increasingly optimistic about the US Federal Reserve’s potential to continue cutting interest rates through next year.

This optimism was fueled by recent data indicating weakness in the US labor market and easing inflation, giving the central bank room to ease monetary policy further. Monday’s gain pushed gold past its previous record high of $4,381.52 set in October.

The precious metal’s rise is attributed to its traditional safe-haven appeal, with investors seeking refuge amid geopolitical tensions and trade uncertainties. A softer US dollar also made gold more attractive to international buyers. With investors pricing in two US rate cuts in 2026, gold’s non-yielding nature becomes more appealing.