Gold prices surged to an all-time high on Monday, as slowing inflation in the United States bolstered expectations that the Federal Reserve may soon implement its first interest rate cut. Meanwhile, silver rose to its highest level in over 11 years. Spot gold reached a new record high of $2449.89 per ounce, while U.S. gold futures increased by 1.01% to $2441.90. Data from last week showed signs of slowing inflation in the U.S., with investors now seeing a 65% chance of a rate cut by September. The dollar index remained weak, making gold, priced in U.S. currency, more attractive for buyers holding other currencies.
Investors are eyeing the minutes from the last Federal Reserve meeting set to be released on Wednesday, along with comments from several Fed speakers. In the case of other precious metals, spot silver rose by 2.43% to $32.02 after hitting its highest level in over 11 years at $32.75. Analysts at ANZ noted in a memo: "Silver is relatively cheap compared to gold, and the strength of the underlying fundamentals is increasing investor interest." Platinum increased by 0.04% to $1090.40, after reaching its highest level since May 12, 2023. Palladium rose by 1.7% to $1028.
