Gold pushed to a six-week high on Monday, lifted by swelling expectations of U.S. interest-rate cuts and a weakening dollar that reinforced demand for the metal.
Silver surged to its own record peak as traders piled into precious metals ahead of a heavy week for U.S. economic data that is expected to influence the Federal Reserve’s final policy signals of the year.
Spot gold inched up 0.1% to $4,233.83 per ounce at 11:15 a.m. ET (1615 GMT), its strongest level since October 21. U.S. gold futures for February delivery rose 0.3% to $4,266.60. The move reflects a wider shift in global markets as softer U.S. data and increasingly dovish remarks from Fed officials intensify bets that the central bank is preparing to pivot toward easing.
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Silver jumped 3.1% to $58.09 after touching a fresh all-time high of $58.23 earlier. The metal has now climbed more than 100% this year, a surge driven by industrial demand linked to energy transition spending, tightening physical supply conditions, and sustained safe-haven flows.
The dollar’s slide to a two-week low added more fuel to the rally, making gold cheaper for overseas buyers.
“The underlying environment of expectations of further rate cuts, along with inflationary pressure still above the Fed target… is still the underlying support in gold and silver,” said David Meger, director of metals trading at High Ridge Futures.
Fed expectations shifted sharply after cautious economic indicators in recent weeks and dovish commentary from Governor Christopher Waller and New York Fed President John Williams. Markets now see an 87% chance of a rate cut in December, based on CME’s FedWatch tool, giving non-yielding assets like gold more room to climb.
Attention is now turning to a packed data calendar. Wednesday brings November’s ADP employment print, while Friday delivers the delayed September Personal Consumption Expenditures (PCE) Index — the Fed’s preferred inflation gauge. Fed Chair Jerome Powell will also speak later on Monday, and traders say any softening in tone could push rate-cut bets even higher.
There is also a political undercurrent running beneath the metals rally. While gold typically rises when rate-cut expectations grow, some analysts say the metal’s persistent strength this year also reflects investor caution about the economic environment under President Donald Trump as markets try to assess how the administration’s policy direction, personnel shifts, and fiscal posture may influence inflation, trade strategy, and interest-rate stability heading into 2026. The view is not universal, but it has become a recurring talking point among traders who note that investors often use precious metals as a hedge when political and economic navigation feels uncertain.
Speculation around the coming transition at the Fed is adding an additional layer. White House economic adviser Kevin Hassett said on Sunday that he would be willing to serve as the next Fed chair if selected. Treasury Secretary Scott Bessent indicated that a nominee could be named before Christmas, a development that has kept traders alert, given the potential policy implications of a more dovish successor.
Despite the steep rally, analysts say the broader trend still points upward. “We still view gold and silver in a strong sideways to higher uptrend,” Meger said.
Elsewhere in the complex, platinum fell 0.8% to $1,659.03 and palladium dropped 1.4% to $1,429.68 as the extraordinary rallies in gold and silver continued to dominate investor focus.