Gold hits record high on US rate cut bets; silver joins rally to hit all-time peak

Published
1
A worker polishes gold bullion bars at the ABC Refinery in Sydney on August 5, 2020. — AFP
A worker polishes gold bullion bars at the ABC Refinery in Sydney on August 5, 2020. — AFP

Gold prices surged to a record high on Monday, riding on growing expectations of further US interest rate cuts and strong safe-haven demand, with silver also joining the rally to hit an all-time peak.

Spot gold rose 1.2 per cent to a record $4,391.92 an ounce, while spot silver climbed 2.7opc by 0344GMT to hit a historic high of $69.23.

Bullion has gained 67pc so far this year, shattering multiple records and breaching the $3,000 and $4,000 per ounce milestones for the first time. It is poised for its biggest annual gain since 1979.

Silver has surged 138pc year-to-date, vastly outperforming gold, underpinned by robust investment inflows and persistent supply constraints.

“With December usually producing positive returns for gold and silver, seasonality is on their side,” said StoneX senior analyst Matt Simpson.

“Given that gold has already risen 4pc 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.”

Traditionally viewed as a safe-haven asset, gold has been supported by heightened geopolitical and trade tensions, steady central bank buying and expectations of lower interest rates next year.

A softer dollar has provided an additional tailwind by making the metal cheaper for overseas buyers.

Markets are currently pricing in two US rate cuts for next year despite the Federal Reserve signalling caution. Non-yielding assets such as gold tend to benefit in lower interest rate environments.

Simpson said two Fed rate cuts were pencilled in for 2026, with a faster US jobs slowdown and a shift to a more dovish Fed likely to add further upside to gold.

Elsewhere, platinum jumped 4.1pc to $2,054.25, hitting its highest in more than 17 years, while palladium climbed 4pc to $1,781.32, hitting a near three-year high.

Opinion

Editorial

Electoral reform
Updated 04 Nov, 2026

Electoral reform

The real problem is the gulf between the statute book and what happens on polling day, not the laws.
Competing demands
04 Nov, 2026

Competing demands

THE climate crisis is becoming harder to confront as the world develops new ways to consume scarce resources. At an...
Belated meeting
Updated 04 Nov, 2026

Belated meeting

Whether it is Imran Khan, his family members, or other incarcerated political leaders and activists, the state should not deny them their rights.
An opening
Updated 03 Nov, 2026

An opening

If this brief opportunity for peace is wasted, sparking a wider conflict, the blame will rest squarely with the US president and the bloodthirsty Zionist regime.
Pakistan’s G-24 role
03 Nov, 2026

Pakistan’s G-24 role

PAKISTAN’S new role as chair of G-24 comes at a crucial moment for the Global South. Developing nations are...
Learning from polio
03 Nov, 2026

Learning from polio

THE eighth polio case of 2026, involving a 13-month-old girl from Khyber’s Bara tehsil, raises an important...