Gold Surges Past $3,600 to Fresh Record High Amid Fed Cut Bets and Political Uncertainty
Gold prices climbed to a record high above $3,600 an ounce on Monday, driven by growing expectations of a US interest rate cut and rising concerns over central bank independence.
Spot gold rose 0.8% to $3,613.87, as investors sought safe-haven assets amid an uncertain economic and political backdrop. Lower interest rates typically reduce returns on cash and bonds, boosting demand for alternative assets such as gold.
The latest surge follows downbeat US jobs data released on Friday, which strengthened expectations that the Federal Reserve may cut rates when it meets next week.
Gold has already soared over 35% this year, fuelled by its role as a hedge against inflation and a go-to safe haven during periods of volatility. Some investors are growing increasingly concerned about the possibility of stagflation — a combination of high inflation and slowing economic growth.
Mark Haefele of UBS said gold should “benefit from lower real rates and ongoing geopolitical risks”, with the bank forecasting prices could reach $3,700 per ounce by June 2026.
Political tensions have also added to market jitters. Traders are closely watching Donald Trump’s legal push to remove Federal Reserve governor Lisa Cook, which is currently making its way through the courts.
The move comes amid a series of attacks by the US President on the central bank, including repeated public criticism of Fed Chair Jerome Powell, whom he has labelled a “numbskull” and “too late” Powell.
With both economic and political uncertainty on the rise, gold’s record-breaking rally shows no signs of slowing.
