Gold hits record $3,963 per ounce as investors seek safety amid global uncertainty and expected Fed rate cuts.
WASHINGTON: Gold surged to a record high on Monday, climbing past US$3,960 per ounce as investors turned to the precious metal amid growing market expectations of a U.S. Federal Reserve interest rate cut later this month.
Spot gold traded at US$3,963, marking its highest-ever level, as economic uncertainty and geopolitical tensions prompted a renewed rush toward safe-haven assets. Analysts say the rally reflects both investor caution and the weakening outlook for the U.S. dollar.
According to market observers, softer U.S. manufacturing data and slower job growth have increased speculation that the Federal Reserve could ease monetary policy to support economic stability. Lower interest rates typically make non-yielding assets like gold more attractive to investors.
“Market sentiment has shifted sharply in favour of gold as a hedge against both inflation and volatility,” said a commodities strategist at a major U.S. investment firm. “With uncertainty surrounding global growth, gold remains the preferred safe-haven asset.”
The latest surge builds on months of steady gains driven by central bank purchases and strong retail demand across Asia and the Middle East. Analysts expect prices to remain elevated as long as macroeconomic risks and policy uncertainty persist.
