Gold surged above $4,400 per ounce for the first time on Monday, buoyed by mounting expectations of further U.S. interest rate reductions and robust safe-haven demand. The rally also lifted silver to an unprecedented high.
Spot gold gained 1.43% to $4,404.98 per ounce as of 12:52 P.M. (GMT+7), surpassing the level of $4,400 per ounce. Meanwhile, spot silver advanced 2.49% to $68.81, after touching a historic peak of $69.44 earlier in the session.
Bullion has appreciated 67% year-to-date, surpassing the $3,000 and $4,000 per ounce marks for the first time and on track for its largest annual increase since 1979. As for silver, its year-to-date advance stands at an impressive 138%, significantly outpacing gold on the back of strong investment demand and continuing supply limitations.
Gold’s role as a safe-haven asset has been underpinned by persistent geopolitical and trade uncertainties, steady buying from central banks, and expectations of rate cuts by the U.S. Federal Reserve in 2026. The weaker dollar has further supported the metal by lowering prices for international buyers.
Despite the Fed signalling a cautious approach, markets are pricing in two U.S. rate cuts for the coming year. Lower interest rates generally boost non-yielding assets such as gold. Simpson also noted that any acceleration in the U.S. jobs slowdown, combined with a dovish stance from the Fed, could add more upside to gold prices.
