Gold prices reached unprecedented levels on Monday, climbing to a record $3,685.39 per ounce before settling at $3,680.80, as investors positioned ahead of a crucial U.S. Federal Reserve meeting this week.
Fed meeting drives gold rally
The rally comes as the Federal Reserve begins its two-day policy meeting, with markets widely anticipating a 25-basis-point rate cut—the first since December.
The dollar index slipped to a one-week low, while U.S. 10-year Treasury yields also declined, enhancing gold’s appeal as a non-yielding asset.
Peter Grant, vice president and senior metals strategist at Zaner Metals, highlighted the prevailing sentiment:
“Expectations of a 25-basis-point rate cut are largely baked into the cake at this point.”
Grant added that additional cuts could follow before year-end, with short-term price targets for gold at $3,700, $3,730, and $3,743.
Political pressures and global demand
This week’s Fed meeting is taking place under unusual political scrutiny, with a leadership dispute and President Donald Trump pressing for more influence over monetary policy.
The Senate has left open the possibility of Trump’s adviser Stephen Miran joining the rate-setting committee in time for the vote.
Meanwhile, reports that China may relax gold import and export rules have boosted official and private demand, further fueling the rally.
Broader market context
Recent U.S. economic data showed consumer prices rising at their fastest pace in seven months, while weakening labor market figures keep the Fed on track to cut rates.
Other precious metals also saw gains, with spot silver up 1.1% to $42.62 per ounce and platinum up 0.7% to $1,400.77.
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