Gold prices surged to a new all-time high on Monday, driven by growing investor confidence that the United States Federal Reserve will maintain its interest rate cuts into next year.
In early trading, the precious metal rose to $4,383.76, surpassing its previous record of $4,381.52 set in October. The rally followed the release of economic data last week that pointed to continued softening in the US labour market alongside easing inflationary pressures.
Analysts said the latest figures have strengthened expectations that the Federal Reserve has sufficient scope to further loosen monetary policy, a development that typically boosts demand for non-yielding assets such as gold.
Monday’s advance underscores gold’s appeal as investors position for lower interest rates and adjust portfolios in response to shifting economic signals from the world’s largest economy.
