Gold Surges to Four-Month Peak as Rate-Cut Hopes Mount

Gold Hits Four-Month High

Gold prices soared on Monday, reaching a four-month peak as markets increasingly priced in a September interest rate cut by the U.S. Federal Reserve. Spot gold rose 1.2% to $3,486.86 per ounce, marking the strongest level since April 23, while U.S. futures rose 1.1% to $3,554.60, reinforcing bullish momentum.

This jump underscores renewed investor appetite for gold as a haven amid growing uncertainty and dovish central bank sentiment.

Soft Dollar and Fed Expectations

Dovish remarks by San Francisco Fed President Mary Daly helped ease concerns about inflation and gave markets confidence that Fed rate-cut hopes are alive. A court ruling that invalidated many of former President Trump’s tariffs further weakened the U.S. dollar, making gold more attractive across global markets.

Together, these dynamics continue to fuel gold’s rally and bolster its safe-haven status.

Broader Precious Metals Momentum

Gold wasn’t alone. Silver surged past $40 per ounce for the first time since 2011, rising 2.2%, while platinum and palladium also posted gains of 1.5% and 0.8%, respectively, reflecting broad-based bullish sentiment for precious metals.

Traders noted persistently tight silver supplies, intensifying upward price pressure.

Gold's Monthly Rally

The yellow metal is on track for its strongest month since April, rising roughly 3.9% in August on the back of soft inflation data and robust rate-cut expectations.

With the Fed's next meeting just around the corner, momentum remains squarely in gold’s favor.

What Analysts Are Watching

• Fed moves: Markets see an ~87–89% likelihood of a 25bp cut in September, keeping gold bid in the near term.
• Inflation signals: The upcoming U.S. Personal Consumption Expenditures (PCE) report will be a key barometer for sustainment of dovish sentiment.
• Technical resistance: A sustained break above $3,500 could drive further momentum and attract speculative buyers.

The Role of Geopolitics and Liquidity

Thinner liquidity, due to low U.S. bank holiday volumes, helped amplify price movements. Meanwhile, geopolitical uncertainty, from shifting trade policies to Fed independence challenges, continues to reinforce gold’s allure.

Gold remains the default hedge for investors navigating persistent macro turbulence.

The Bottom Line

Gold surged to a four-month high on Monday as rising expectations for a Fed rate cut, a weaker dollar, and dovish signals buoyed investor demand for safe-haven assets. With momentum strong and catalysts lining up, gold is emerging as one of 2025’s most compelling asset plays.