Gold prices soared to unprecedented levels on Monday, surpassing $4600 per ounce, fueled by a combination of geopolitical and economic uncertainties coupled with anticipated interest rate cuts by the US Federal Reserve. Spot gold experienced a significant rise of 1.5%, reaching $4478.79, after peaking at a high of $4600.33. Meanwhile, US gold futures saw an even more substantial increase of 2%, settling at $4591.10.
The precious metals market witnessed a broad rally, with silver leading the charge. Silver prices jumped to an all-time high of $83.96 per ounce, following a 4.4% surge in spot trading to $83.50. Platinum also saw gains, reaching $2338.54 per ounce, a 2.9% increase. Palladium mirrored this upward trend, climbing 4.2% to $1892.18 per ounce.
This surge in precious metals is attributed to ongoing geopolitical instability and recent US economic data indicating a slowdown in job growth. These factors have significantly strengthened investor expectations that the Federal Reserve will implement at least two interest rate cuts this year. Market analysts predict that gold could potentially reach $5000 per ounce in the first half of 2026. The confluence of economic and political factors continues to drive investment towards safe-haven assets, benefiting gold and silver significantly.
The performance of precious metals reflects a broader trend of investors seeking refuge from economic uncertainty. As global markets remain volatile, gold and silver are expected to maintain their appeal as stores of value. DZWatch will continue to monitor these market developments and provide updates as the situation evolves.
