Gold surged to a fresh all-time high on Monday, driven by renewed investor interest in exchange-traded funds (ETFs) backed by the precious metal.
Spot gold reached a record $2,956.19 per ounce, surpassing the previous peak set on Thursday before pulling back slightly. The metal has now posted gains for eight consecutive weeks, marking its longest rally since 2020. Last week, gold-backed ETFs recorded their largest net inflows since 2022, further supporting the upward trend.
Investor demand for gold as a safe-haven asset has intensified amid growing concerns over President Donald Trump’s trade and geopolitical policies. Goldman Sachs recently raised its year-end price target for gold to $3,100, citing central-bank purchases and expanding ETF investments as key drivers.
The U.S. dollar initially weakened on Monday before recovering some losses, following economic reports on Friday that showed slowing U.S. business activity, weakening consumer confidence, and rising inflation expectations. Swap markets are now pricing in additional Federal Reserve rate cuts this year, with traders anticipating the first reduction in July 2025 instead of September. A weaker dollar and lower borrowing costs typically boost gold prices.
Investors will be closely monitoring the Federal Reserve’s preferred inflation gauge, set for release on Friday. While the data is expected to show the slowest inflation pace since June, persistent price pressures may keep policymakers cautious about future rate cuts.
As of 3:03 p.m. in London, spot gold remained steady at $2,933.80 per ounce. The Bloomberg Dollar Spot Index was also little changed after three weeks of declines. Meanwhile, silver held firm, while platinum and palladium posted losses.
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