Gold prices surged to a new record overnight on Monday, fueled by growing expectations that the US Federal Reserve will cut interest rates in September. A weaker dollar and supportive economic data added to the momentum, while geopolitical and trade tensions further boosted safe-haven demand.
At 10:07 pm CET, spot gold was trading at $3,499.18 an ounce, up 0.62%, after touching an intraday high of $3,508.64. Silver also held strong at $40.73, after briefly setting an all-time high in euro terms a day earlier.
The rally comes as US inflation data showed steady consumer spending, reinforcing the case for monetary easing. Lower rates typically benefit non-yielding assets like gold, making them more attractive to investors.
Gold has also drawn support throughout 2025 as investors seek a hedge against global uncertainty, with US President Donald Trump’s escalating trade war triggering volatility in equity and currency markets.
With central bank easing in focus and demand for safe havens climbing, analysts say bullion could remain on an upward trajectory in the weeks ahead.
