Gold price hits record high as bets grow on further US rate cuts

London - Gold prices surged to a fresh all-time high on Monday as investors increasingly bet that the Federal Reserve will continue cutting interest rates into 2026, following signs of easing inflation and a softening US labour market.

The precious metal climbed to $4,383.76 in early trading, surpassing its previous record of $4,381.52 set in October. The rally was driven by a string of economic data released last week showing cooling price pressures and further weakness in employment, reinforcing expectations of looser monetary policy.

Lower interest rates typically boost demand for gold, which offers no yield but becomes more attractive when borrowing costs fall and returns on bonds decline.

Monday’s move extended gold’s strong run this year, as investors continue to use the metal as both a hedge against economic uncertainty and a beneficiary of shifting central bank policy expectations.