Gold Reaches Record High as Rate Cut Expectations Grow

Global Market Surge

Gold prices achieved a new record high above $4,400 per ounce on Monday, driven by multiple converging factors. The primary catalyst was the growing market expectation of further interest rate cuts by the US Federal Reserve. This anticipation has been fueling demand for precious metals as investors seek safe-haven assets ¹

Key Drivers of the Price Surge

1. Monetary Policy Expectations: The market is increasingly pricing in additional rate cuts by the Fed, boosting gold's appeal as a non-yielding asset.
2. Geopolitical Tensions: Escalating tensions between the US and Venezuela have contributed to the safe-haven demand for gold.
3. Dollar Weakness: A weaker US dollar has made gold more attractive to international buyers.
4. Commodities Rally: Silver followed gold's trajectory, surging 2.5% to reach $69.44 per ounce, its highest level ever ²
   Source 2

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   Source 3

   https://internasional.kontan.co.id/news/harga-emas-cetak-rekor-tertinggi-sepanjang-masa-ke-us-438373-senin-2212-pagi
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Market Performance Details

• Spot gold rose 1.7% to $4,411.01 per ounce at one point, reaching an intraday peak of $4,420.01 per ounce.
• February futures contracts climbed 1.3% to $4,444.00 per ounce.
• Silver spot prices jumped 2.5% to $69.44 per ounce, marking a significant milestone in its own right ³
  Source 3

  https://internasional.kontan.co.id/news/harga-emas-cetak-rekor-tertinggi-sepanjang-masa-ke-us-438373-senin-2212-pagi
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Market Outlook

The current gold price surge appears driven by a combination of technical and fundamental factors. Analysts note that the breach of the $4,400 level occurred amid lower trading volumes typical of the holiday season, suggesting that the momentum could continue if supported by continued rate cut expectations ²