Gold prices surged to a fresh record on Monday as investors piled into the precious metal amid growing confidence that the US Federal Reserve will continue cutting interest rates into next year.

Spot gold climbed to an intraday peak of $4,383.76, surpassing the previous record of $4,381.52 set in October. The rally followed a string of US economic data pointing to a softening labour market and easing inflation pressures, strengthening the case for looser monetary policy.

Lower interest rates tend to support gold by reducing the opportunity cost of holding non-yielding assets, making bullion more attractive relative to bonds and cash.

US Data Fuels Expectations of Further Fed Easing

Investor optimism was reinforced by figures released last week showing US unemployment rose to a four-year high in November, while a separate report indicated consumer price growth slowed more than economists expected.

The combination has reignited expectations that the Fed could begin cutting borrowing costs earlier and more aggressively than previously thought. Markets had briefly scaled back those bets earlier this month after the central bank suggested it could pause further easing.

“This labour market softening and inflation moderation strengthened Federal Reserve easing expectations for 2026,” said Fabien Yip, market analyst at IG.

However, Yip cautioned that the latest inflation reading may not tell the full story. She noted that data collection disruptions linked to government shutdowns could have temporarily dampened the figures, with inflation potentially ticking higher once reporting normalises.

Geopolitical Tensions Add to Safe-Haven Demand

Beyond monetary policy, gold also benefited from rising geopolitical concerns. Investors sought refuge in traditional safe-haven assets as Washington stepped up its oil blockade against Venezuela, while Ukraine reportedly struck a tanker linked to Russia’s shadow fleet in the Mediterranean.

Such developments have added to global uncertainty at a time when markets are already navigating shifting interest rate expectations and fragile geopolitical dynamics.

Asian Markets Rally as Risk Appetite Returns

Gold’s rally came alongside a broader rebound in global equities. Asian markets advanced across the board on Monday, buoyed by hopes for further US rate cuts and easing concerns over excessive spending on artificial intelligence.

Technology stocks led the gains, with Samsung Electronics, TSMC, and Renesas among the strongest performers. Major markets including Hong Kong, Shanghai, Sydney, Seoul, Singapore, Mumbai, Bangkok, Wellington, Taipei and Manila all closed higher.

Tokyo stood out, with the Nikkei 225 jumping 1.8 percent, helped by a weaker yen that boosted export-oriented stocks.

“Asian equity markets are stepping onto the floor with a constructive bias,” said Stephen Innes of SPI Asset Management, citing Wall Street’s rebound and renewed confidence that year-end momentum still favours bullish positioning.

Wall Street Tech Surge Lifts Global Sentiment

The upbeat mood followed a strong finish on Wall Street, where technology stocks powered a rally led by the Nasdaq. Optimism was fuelled by a strong earnings report from Micron Technology, which helped revive enthusiasm around the AI trade.

Additional support came from news that Oracle plans to take a 15 percent stake in a TikTok joint venture, allowing the social media platform to continue operating in the United States.

The rebound followed a recent bout of selling driven by concerns over stretched valuations and questions about whether massive investments in artificial intelligence would deliver near-term returns.

Currency Markets Watch Japan Closely

In foreign exchange markets, attention turned to Japan after senior officials voiced concern about the yen’s sharp weakness. The currency fell more than one percent against the dollar on Friday after the Bank of Japan raised interest rates to a 30-year high but stopped short of signalling further hikes soon.

“We’re seeing one-directional, sudden moves,” said Atsushi Mimura, Japan’s Vice Finance Minister for International Affairs, adding that authorities were prepared to respond to excessive volatility.

His comments sparked renewed speculation that Tokyo could intervene to stabilise the currency if depreciation accelerates.

Key Market Levels

• Gold: Record high at $4,383.76
• WTI Crude: $57.12 per barrel
• Brent Crude: $61.10 per barrel
• Dollar/Yen: 157.45
• Euro/Dollar: $1.1730
• Dow Jones: Up 0.4 percent at 48,134.89

Outlook

With year-end trading underway and investors positioning ahead of 2026, gold’s record-breaking rally underscores how sensitive markets remain to shifts in US monetary policy expectations. If economic data continues to signal slowing growth and cooling inflation, bullion could remain well supported—especially as geopolitical risks and currency volatility add another layer of uncertainty.