Spot gold climbed to a fresh all-time high of $4,383.73 per ounce on Monday, reflecting optimism that the U.S. Federal Reserve will continue cutting interest rates following last week’s quarter-point reduction. Lower borrowing costs tend to enhance the appeal of non-yielding assets such as gold, particularly when combined with currency depreciation.
The metal has risen around 67% so far this year, supported by a confluence of factors including geopolitical and trade tensions, sustained purchases by central banks, and expectations that interest rates will trend lower into next year. The softer dollar index has further bolstered demand by making gold more affordable for buyers using other currencies.
Market pricing now suggests investors are anticipating two additional U.S. rate cuts in 2026, reinforcing bullish sentiment across the bullion market. As uncertainty over global growth and policy direction persists, gold’s role as a store of value continues to attract both institutional and sovereign buyers, keeping upward pressure on prices.