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Gold prices climbed to a four-month high on Monday, driven by growing market expectations of a U.S. Federal Reserve interest rate cut in September. The prospect of looser monetary policy boosted demand for non-yielding assets like bullion, traditionally seen as a safe haven during economic uncertainty.
Spot gold rose above $3,470 per ounce, while silver broke past $40 per ounce for the first time since 2011. Analysts attribute the rally to dovish signals from Fed officials and a softening U.S. dollar, which makes precious metals more attractive to investors globally.
The surge also reflects broader investor sentiment amid geopolitical tensions and trade policy uncertainty. With markets pricing in a high probability of a 25-basis-point rate cut, gold and silver are expected to remain strong in the near term.
