New All-Time High for Bullion
Gold surged to a fresh record on Monday, supported by a weaker U.S. dollar and softer Treasury yields as investors positioned for the Federal Reserve’s highly anticipated policy meeting. Spot gold rose 0.9% to $3,674.09 per ounce after reaching an intraday record of $3,674.63. U.S. gold futures for December delivery climbed 0.7% to $3,712.70. The metal gained about 1.6% last week, marking a strong momentum ahead of potential rate adjustments.
Dollar and Yields Support Demand
The dollar index fell to a one-week low, enhancing gold’s appeal for holders of other currencies, while the benchmark 10-year Treasury yield moved lower. Lower yields reduce the opportunity cost of holding non-yielding assets such as gold. Analysts now see the $3,700 mark as the next technical target, with additional resistance at $3,730 and $3,743 in the near term.
Federal Reserve in Focus
Markets widely expect the Fed to deliver a 25-basis-point cut on Wednesday, the first since December. Some investors, however, are still betting on a larger 50-basis-point move, according to the CME FedWatch tool. Peter Grant, senior strategist at Zaner Metals, said expectations for a smaller cut are already priced in and added that one or two more cuts could follow before year-end. The central bank meets under unusual political pressure, with President Donald Trump pushing for more influence over monetary policy and Stephen Miran potentially joining the rate-setting committee in time to vote.
Broader Market Moves
Gold’s rally comes after U.S. data showed inflation accelerating at its fastest pace in seven months in August, while recent labor reports suggest a weakening jobs market. The combination has strengthened expectations of easier monetary policy. Other precious metals also advanced: spot silver rose 1% to $42.59 per ounce, platinum gained 0.5% to $1,397.80, while palladium slipped 1.4% to $1,181.09.
