Gold prices edged lower on Monday after reaching record highs in the previous session, as some investors moved to lock in profits and the U.S. dollar strengthened modestly. Despite the pullback, ongoing geopolitical risks and expectations of future U.S. interest rate cuts continued to support gold’s broader appeal.
Spot gold was down 1.8% at $4,451.05 per ounce by early morning U.S. trading, after touching an all-time high of $4,549.71 on Friday. U.S. gold futures for February delivery also slipped 1.8% to $4,470 per ounce.
Fed rate-cut expectations continue to underpin gold
Gold’s powerful rally has been driven largely by growing confidence that the Federal Reserve will continue easing monetary policy in the year ahead. Markets are increasingly pricing in a faster rate-cut cycle in 2026 as inflation shows signs of cooling.
Lower interest rates typically benefit gold by reducing the opportunity cost of holding non-yielding assets. Expectations of looser monetary policy have also weighed on the U.S. dollar this year, providing additional support for bullion.
Gold has delivered an exceptional performance in 2025, rising more than 72% year to date. Analysts attribute the surge to sustained central bank buying, strong inflows into gold-backed exchange-traded funds, persistent geopolitical uncertainty, and demand from investors seeking protection against currency volatility and macroeconomic risk.
Prices eased on Monday, however, after U.S.-led talks aimed at ending the war in Ukraine failed to deliver a decisive breakthrough. While a durable peace agreement could eventually weigh on safe-haven demand, recent developments have not yet reached that point.
Silver and other metals retreat after record highs
Silver prices reversed sharply after touching fresh record levels earlier in the session. Silver futures fell 3.4% to $74.59, after climbing to a new high of $82.61 per ounce. Spot silver dropped as much as 5.3% to $74.57, having earlier peaked near $83.99.
Silver has been supported by strong industrial demand alongside its role as a safe-haven asset. However, the latest pullback reflects aggressive profit-taking following the recent surge.
Platinum also retreated, with spot prices sliding 6.3% after hitting a record high earlier in the day. Copper prices weakened as well, with futures falling 3.8% to $5.62 per pound, as broader base metal markets came under pressure.
