Gold prices surpassed the $4400 level per ounce for the first time today, Monday, propelled by expectations of cuts in U.S. interest rates and the continuation of safe-haven buying.
Following in the footsteps of the yellow metal, silver recorded a new record level.
The spot gold price climbed by 2% to record a new high of $4426.66 per ounce by 17:13 Abu Dhabi time.
U.S. gold futures for February delivery rose by 1.5% to reach $4451.60 per ounce.
Gold prices have risen nearly 68% this year, marking their biggest annual rise since 1979, driven by strong buying from central banks and flows into safe-haven assets and falling interest rates.
Giovanni Stornovo, an analyst at Bank B.S., said "Lower interest rates support the demand for real assets such as gold and silver. However, copper prices have also reached a record level, indicating investors’ desire to hold substantial investments in commodities in general, probably due to expectations that inflation may remain high for an extended period."
Federal Reserve member Stephen Miran stated on Friday that the U.S. central bank should cut interest rates as inflation has decreased and monetary policy needs to balance the risks facing the labor market.
At the same time, the dollar is on its way to its biggest annual drop since 2017, making gold less costly for holders of other currencies.
