Investors Flock to Gold Ahead of Fed Decision
Gold rallied to a fresh record Monday, breaching $3,700 an ounce for the first time, as market expectations solidify around a Federal Reserve rate cut this week. A weaker dollar, down to its lowest in over 10 weeks, helped amplify the metal’s gains.
The move higher comes ahead of the Fed’s rate decision and the release of its updated economic projections—widely watched as the “dot plot.” Traders are looking for guidance from Fed Chair Jerome Powell on how aggressively the central bank may cut rates through year-end.
Gold’s Rise Signals Safe-Haven Momentum
Gold’s ascent has been supported by persistent macro uncertainty, central bank accumulation, and sustained demand through ETFs. With labor market softness and subdued inflation prints, the case for additional monetary easing has strengthened.
Year-to-date, gold is up more than 40%, outpacing major asset classes including equities. The metal has now surpassed its inflation-adjusted high from 1980, signaling just how aggressively investors have rotated into safe-haven trades.
Goldman Sachs recently noted that if just 1% of privately-held U.S. Treasuries were redirected into gold, the price could climb toward $5,000 per ounce.
Policy Pressure and Political Crosscurrents
Rate cut optimism is also being shaped by increased political pressure on the central bank. The U.S. President has publicly criticized the Fed and sought leadership changes. Meanwhile, economist Stephen Miran is reportedly poised to join the central bank, potentially shifting its policy tone further.
As of late Monday trading in London, gold rose 0.4% to $3,693.81 per ounce, after briefly hitting $3,703.07. Silver touched a 14-year high, while platinum and palladium retreated.
Catch up on our previous story: CoreWeave Stock Surges After $6.3 Billion Nvidia Deal Disclosure
Explore more commodity market moves on our homepage
Final Take: Rate Cut Rally Sends Gold Into Record Territory
Gold’s breakout above $3,700 underscores how sensitive markets remain to Fed policy direction. As rate cuts loom and geopolitical risks persist, gold could continue gaining traction as both a hedge and momentum play.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any trading decisions.
