Expectations of a rate cut in the United States and the attraction of safe-haven assets are driving spot gold to reach a historical high.

Spot gold surged to a historic high of $4,884.82 per ounce on Monday, boosted by market expectations of further interest rate cuts by the Federal Reserve, ongoing safe-haven demand, and a weaker US dollar. Driven by geopolitical and trade tensions, central bank buying spree, and hopes of rate cuts next year, gold, a traditional safe-haven asset, has risen by 67% year-to-date. Investors are currently pricing in two interest rate cuts by the US in 2026, thereby increasing the attractiveness of gold.