Spot gold soared to a record high of $4,383.73 per ounce on Monday, fueled by expectations of additional U.S. Federal Reserve interest rate cuts following last week’s quarter-point reduction. Continued safe-haven demand and a weaker dollar also contributed to the surge.

Gold, traditionally seen as a safe-haven asset, has climbed 67% this year. The rally has been supported by ongoing geopolitical and trade tensions, strong central bank purchases, and optimism for lower interest rates next year. A declining dollar index has further enhanced gold’s appeal by making it more affordable for international buyers.

Currently, investors are anticipating two U.S. interest rate cuts in 2026, increasing the attractiveness of non-yielding assets like gold.