Spot Gold extended its bullish run to a new all-time high of $4,420.07/oz. on Monday, underpinned by expectations of further policy easing by the Federal Reserve and robust safe-haven demand.
FOMC policy makers signaled just one 25 bps rate cut for next year, while investors continue to expect two rate cuts of 25 basis points each.
Lower interest rates tend to reduce the opportunity cost of holding Gold, which pays no interest.
Strong central bank buying, US tariff policies, potential rate cuts by the Federal Reserve, robust ETF inflows and geopolitical uncertainty have fueled Gold’s rally to a series of record highs this year.
Year-to-date, the yellow metal has surged 68.20%, set to register its best annual performance since 1979.
“With December usually producing positive returns for gold and silver, seasonality is on their side,” StoneX senior analyst Matt Simpson was quoted as saying by Reuters.
“Given that gold has already risen 4% this month and we’re nearing the end of the year, bulls may want to tread with caution as volumes are to deplete and odds of profit-taking are also likely on the rise.”
Spot Gold was last up 1.73% on the day to trade at $4,413.93 per troy ounce.
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