As market expectations for further interest rate cuts by the Federal Reserve intensified following the release of US employment data, coupled with escalating geopolitical tensions due to intensifying protests within Iran, multiple factors have propelled gold prices to a new historical peak. During early trading on Monday, the international gold price breached the $4,580 per ounce mark. The previously released US Non-Farm Payrolls report indicated that job additions last month fell short of market expectations, further reinforcing market anticipation that the Fed will continue cutting rates to support the economy. Additionally, spot silver also broke through its previous record high. At the time of writing, spot gold was up 1.7% at $4,585.26 per ounce, while silver surged 3.80% to $83.025 per ounce, extending last week's strong gains of nearly 10%; prices for palladium and platinum also moved higher. It is understood that the Federal Reserve implemented three consecutive interest rate cuts in the second half of last year, and against this backdrop, the market has already priced in expectations for at least two rate cuts this year. For gold, which does not generate interest income, rate cuts are undoubtedly a significant positive factor. Simultaneously, the deadly protests erupting in Iran have further enhanced the safe-haven appeal of precious metals. The potential risk of a change in Iran's political regime adds more uncertainty to the geopolitical landscape and the international crude oil market. Gold has just concluded a record-breaking year. Driven by the convergence of multiple tailwinds—including the start of a rate-cutting cycle, heightened geopolitical tensions, and declining confidence in the US dollar's credibility—the price of gold achieved a powerful rally. More than a dozen asset management firms stated that, based on their firm belief in the long-term investment value of gold, they have chosen to maintain their positions and are not rushing to take profits. Notably, the US Supreme Court has not yet issued a ruling on the tariff policies of the former Trump administration and is scheduled to release a related opinion on Wednesday. A final ruling that overturns these tariff policies would not only undermine a signature economic policy of the Trump administration but also represent the most significant legal setback since his potential return to the White House.
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