Gold prices surged to an all-time high on Monday, driven by escalating geopolitical tensions and renewed fears over the global economic fallout of US President Donald Trump’s tariff policies. The rally also comes in the wake of the Federal Reserve’s first rate cut of 2025, which weakened the dollar and boosted demand for safe-haven assets.
At 2:36 am ET, spot gold climbed 0.65% to $3,708.85 per ounce. Silver followed suit, rising 1.41% to $43.66, while platinum advanced 1.14% to $1,430.05. Palladium also gained 1.20%, trading at $1,151.63 per ounce.
The Federal Reserve cut rates last week to address emerging weakness in the labor market and hinted at further easing in the coming months. Markets are now closely watching inflation data and a series of Fed officials’ speeches this week for additional cues on monetary policy direction.
Lower US interest rates typically boost the appeal of non-yielding assets like gold, while trade tensions and tariff uncertainties have further intensified investor appetite for safe havens.
With bullion already up sharply in 2025, analysts suggest that any signs of prolonged global economic strain or additional policy easing could keep gold near record highs in the short term.
