At the time of writing, spot gold prices rose 1.2% to $3,805.43 per ounce, while U.S. gold futures also hit a fresh high of $3,839.70 per ounce at the time of writing.
Gold prices soared past $3,800 to another record high in early trading on Monday as investors braced for more cuts in benchmark interest rates by the U.S. Federal Reserve and a weaker dollar.
At the time of writing, spot gold prices rose 1.2% to $3,805.43 per ounce, while U.S. gold futures also hit a fresh high of $3,839.70 per ounce at the time of writing. Retail sentiment on Stocktwits about SPDR Gold Shares ETF (GLD) was in the ‘neutral’ territory at the time of writing.
GLD, the largest gold-backed ETF, reported that its holdings increased by 0.9% to 1,005.72 metric tons on Friday, up from 996.85 tons on Thursday.
Bullion’s rise was driven by growing bets of further rate cuts by the U.S. Federal Reserve after the Personal Consumption Expenditures Price Index (PCE) rose 0.3% in August, which was in line with analysts’ expectations. According to the CME Group’s FedWatch tool, over 89% of traders have priced in another 25 basis-point rate cut by the U.S. central bank.
The dollar index, which compares the greenback against a basket of other currencies, edged lower on Monday, further aiding the rise of bullion. The dollar’s decline comes amid growing threats of a U.S. government shutdown later this week.
U.S. President Donald Trump is scheduled to meet with top Congressional leaders to avoid a shutdown, which could begin on Wednesday. The Democrats and Republicans remain locked in a dispute over a temporary spending deal, with the former pushing to keep healthcare subsidies for low and middle-income families.
“Gold isn’t shattering record after record because the Fed’s decision to lower interest rates was correct, or because Trump’s economic policies are a success. It’s indicative of the abject failure of fiscal and monetary policy,” economist Peter Schiff, famous for his bullish stance on the bullion, said on X.
The GLD ETF has surged 42% this year, compared with 16% gains in the SPDR S&P 500 ETF Trust.
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