Gold Hits 4-Month High as Fed Rate Cut Bets Intensify
Silver also surges, hitting a 14-year high as dovish central bank commentary and a weaker U.S. dollar fuel a rally in precious metals.
Gold prices surged to a more than four-month high on Monday, with spot gold rising to $3,470.69 per ounce, as investor bets on a U.S. Federal Reserve interest rate cut this month intensified. The rally was broad across precious metals, with , climbing to $40.31 per ounce for the first time in over a decade.
The primary driver for the rally is the increasing conviction that the Federal Reserve will move to lower borrowing costs. Dovish comments from San Francisco Fed President Mary Daly have bolstered expectations for an imminent policy shift, weakening the U.S. dollar and increasing the appeal of non-yielding assets like bullion. the Fed will implement a 25 basis point rate cut later this month.
Market participants' attention now turns to critical upcoming economic data that could sway the central bank's decision. The , will be a key indicator of the labor market's health and is expected to heavily influence the size and timing of the Fed's expected rate cut. The positive momentum was also seen in other precious metals, with both platinum and palladium recording gains, signaling broad strength across the sector.