"Gold rose on Monday and traded close to record highs, extending its strong upward momentum as markets reacted to US monetary policy expectations and geopolitical risks. The metal benefited from expectations of additional interest rate cuts in 2026 following the Federal Reserve's recent rate reduction and a less hawkish tone than expected from Fed Chair Jerome Powell. At the same time, steady inflows into gold-backed ETFs and continued accumulation by central banks could continue to provide support to the market."
"Beyond that, concerns over the independence of the Federal Reserve could also drive investors toward safe-haven assets. With the Fed's leadership to change during 2026, markets could remain attentive to any political interference in monetary policy. On another front, peace prospects in Eastern Europe remain elusive amid persistent tensions in the region. Similarly, the Middle East continued to face tensions."
Gold traded near record highs as markets priced in additional U.S. interest rate cuts in 2026 after a recent Federal Reserve rate reduction and a less hawkish tone from Fed Chair Jerome Powell. Steady inflows into gold-backed ETFs and ongoing central bank accumulation provided further market support, with ETF inflows stabilizing after a brief outflow period. Rising concerns about Federal Reserve independence and a planned leadership change in 2026 increased demand for safe-haven assets. Persistent tensions in Eastern Europe, ongoing Middle East conflicts, and escalation risks in Asia and Latin America also heightened demand for gold and similar assets.
Read at London Business News | Londonlovesbusiness.com
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