The price of gold reached a fresh high on Monday morning, hitting $3,623 an ounce amid growing expectations around a Federal Reserve rate cut.
Gold hit a fresh record high on Monday after weaker-than-expected US employment data heightened expectations of a Federal Reserve (Fed) interest rate cut. The bullion price rose more than 0.7% to $3,623 an ounce, moving above the previous record set on Friday.
Traders headed to the safe-haven precious metal following a disappointing US non-farm payrolls report which missed market expectations. The data for August showed a significant drop compared to the numbers for July. The final figure of 22,000 fell way below initial analyst estimates of 75,000.
Bullion gained over 4% last week and has risen in nine of the past ten trading sessions, highlighting strong demand. Gold has surged almost 37% so far in 2025, fuelled by safe-haven flows and heavy central bank purchases, particularly from China.
The price of gold has also climbed on expectations that the Fed will announce a cut to its key interest rate. Investors view gold as an attractive prospect, with lower interest rates reducing the opportunity cost of holding non-yielding gold.
Will gold prices continue to rise?
Markets eagerly await the upcoming inflation figures due from the US later this week, which may impact on gold prices. This data has the potential to significantly influence Fed policy expectations alongside the gold price trajectory.
Traders will also closely follow how the market reacts to auctions of 3-, 10-, and 30-year Treasuries. Strong demand at these auctions typically signals confidence, pushing bond yields lower. However, weak demand leads to higher yields, indicating caution and potential fiscal concerns.
Analysts at Goldman Sachs have suggested gold prices could surge close to $5,000 per ounce if investors shifted even limited Treasury holdings into bullion. Market strategists noted that confidence in Fed independence remains critical for global economic stability and investor sentiment.
Other precious metals rally on Monday
Aside from gold, several other popular precious metals rallied in price on Monday morning. Silver moved to near 14-year highs, with futures trading at $41.87 an ounce, a level not seen since 2011.
Elsewhere, platinum futures rose 1.6% to around $1,410 per ounce, while palladium futures showed smaller but steady gains. Benchmark copper futures on the London Metal Exchange were up 0.2% to $9,902 a ton, while US copper futures edged 0.2% higher to $4.56 a pound.
This broader rally reflects ongoing geopolitical and economic risks, with trade disputes and persistent inflationary pressures weighing on global markets. Analysts have warned that continued uncertainty could keep gold and silver demand high until the end of the year.
As for the yellow metal, gold’s rise has also stemmed from multiple pressures including Russia’s invasion of Ukraine, ongoing trade disputes, and inflation-linked supply chain disruptions. Precious metals analysts believe these combined factors will keep safe-haven flows alive despite current global uncertainty.
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