Gold shot up to $4,249.94 per ounce on Monday, hitting a six-week peak as investors raced to position ahead of a likely US interest rate cut.
Dovish signals from Federal Reserve officials, combined with weak economic data following the longest US government shutdown in history, have fueled speculation that the Fed could ease policy. Markets now see an 87% probability of a 25-basis-point reduction, sparking renewed demand for the safe-haven metal.
Attention is turning to this week’s US private payrolls and PCE inflation data, which could provide fresh clues on the Fed’s next moves. Any signs of slowing inflation or softening employment growth are expected to amplify bullish momentum in gold.
Gold has been on a near-unbroken upward streak in 2025, gaining in almost every month, thanks to robust central-bank buying and strong inflows into gold ETFs. These flows have pushed the metal toward its best annual performance since 1979, as investors chase a stable store of value amid uncertainty.
Over the past month, gold has climbed 6.18%, and it is up 60.85% year-on-year, according to CFD benchmark trading. Strong ETF inflows and central-bank accumulation have created a powerful tailwind, keeping momentum high as the year draws to a close.
The rally reflects a broader flight to safety, with investors seeking protection against currency volatility, inflation, and global economic uncertainty. The US dollar’s recent softness has further bolstered gold’s appeal, pushing it higher with each session.
With the Fed meeting looming and key US economic data on the horizon, gold markets are set for a volatile but potentially lucrative run, leaving investors on edge and focused on one of the strongest-performing commodities of the year.
