Gold Hits 4-Month High as Silver Surges to 14-Year Peak on Fed Rate Cut Hopes

Gold prices climbed 1.2% to $3,486.86 per ounce on Monday, marking their strongest level since April. U.S. gold futures also advanced 1.1% to $3,554.60, supported by growing speculation that the Federal Reserve will announce an interest rate cut this month.

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Fed policy outlook

San Francisco Fed President Mary Daly’s dovish remarks encouraged traders to look past recent core PCE inflation data, keeping hopes alive for a 25-basis-point cut. Daly also emphasized risks to the U.S. labor market, reinforcing expectations of policy recalibration.

Tariffs and dollar impact

Adding fuel to gold’s rally, a U.S. appeals court declared most of former President Donald Trump’s tariffs illegal. The ruling weighed on the dollar, further boosting bullion’s appeal. Historically, non-yielding gold performs strongly in a low-interest-rate environment.

Silver hits record high

Silver outshone gold with a sharp 2.2% jump, crossing $40.56 per ounce for the first time since September 2011. Analysts noted that thin liquidity during the U.S. bank holiday amplified price swings, adding momentum to silver’s bullish trend.

Tight supply boosts silver

Market experts highlight that expectations of lower U.S. rates combined with tight supply are sustaining silver’s upward bias. Investors are increasingly turning to silver as both a safe-haven and industrial asset, driving demand to multi-year highs.

Platinum and palladium gain

Other precious metals also posted gains. Platinum rose 1.5% to $1,384.68, while palladium edged up 0.8% to $1,118.06, reflecting broader optimism in the precious metals market.

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