Gold Rockets to Record High on U.S. Rate-Cut Hopes, Haven Demand

By Giulia Petroni

Gold prices reached a record high on Monday, surging past the $4,400-an-ounce mark on growing expectations of further U.S. interest-rate cuts next year and heightened geopolitical risks spurring safe-haven demand.

Futures in New York climbed 1.3% to $4,445.70 an ounce in early European trading after reaching $4,453 earlier in the session, while spot gold rose 1.3% to $4,388.77 an ounce. The precious metal has risen around 68% this year and is on track for its biggest gain since the inflationary shock of 1979.

Mining stocks also advanced at the European open. Endeavour was the biggest riser in the FTSE 100, climbing 2.4%, while Glencore and Fresnillo both gained around 1.7%. Anglo American rose 0.9% and Rio Tinto was up 1.1%.

"Investors are increasingly positioning for looser U.S. monetary policy into 2026, a supportive backdrop for nonyielding assets, while demand has been further underpinned by sustained central-bank purchases and steady inflows into gold-backed [exchange-traded funds]," Soojin Kim, analyst at MUFG, said.

Traders are currently pricing in two rate cuts by the Federal Reserve next year, even though delayed data on the job market and inflation offered little clarity about the state of the U.S. economy. A lower-interest-rate environment typically benefits assets that don't pay interest, such as gold.

Gold's rally has also been driven by higher safe-haven demand after the U.S. stepped up pressure on Venezuela last week, raising geopolitical risks in the region.

In early trading, silver futures climbed 1.8% to $68.67 an ounce, having hit $69.53 earlier. Platinum rose 2.9% to $2,013.20 an ounce.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

December 22, 2025 04:27 ET (09:27 GMT)