Gold prices moved slightly lower on Monday after reaching record highs in the previous session, as some investors took profits and the U.S. dollar strengthened modestly. Despite the pullback, ongoing geopolitical tensions and expectations of U.S. interest rate cuts continued to support gold’s broader bullish outlook.
Spot gold was down 0.4% at $4,513.55 per ounce by 00:51 ET (05:51 GMT), after touching an all-time high of $4,549.71 on Friday. U.S. gold futures for February delivery slipped 0.3% to $4,536.80 per ounce. Gold prices had surged 4.5% over the past week.
Fed rate cut expectations and geopolitical risks underpin gold
Gold’s recent rally has been driven largely by growing confidence that the Federal Reserve will cut interest rates further next year. Markets are increasingly pricing in a faster easing cycle in 2026 as inflation pressures continue to cool, a backdrop that typically supports bullion by lowering 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 gold prices. The metal has delivered a standout performance in 2025, rising more than 72% year to date.
Analysts attribute the sharp gains to a combination of aggressive central bank buying, strong inflows into gold-backed exchange-traded funds, persistent geopolitical uncertainty, and investor demand for protection against currency volatility and broader macroeconomic risks.
On Monday, however, gold retreated from record levels after U.S.-led talks aimed at ending the war in Ukraine failed to deliver a decisive breakthrough. While a lasting peace agreement could reduce safe-haven demand, recent developments have so far fallen short of easing global tensions meaningfully.
Silver, platinum, and copper reach new highs
Other metals remained firm following strong rallies. Silver surged to a fresh record high of $83.62 per ounce, supported by solid industrial demand alongside its safe-haven appeal. Platinum eased slightly after hitting a record peak of $2,478.50 per ounce earlier in the session, buoyed by supply constraints and improving demand prospects in the automotive and industrial sectors.
Copper prices also extended gains. Benchmark copper futures on the London Metal Exchange jumped nearly 7% to $12,937.90 per tonne after touching $12,966.25 earlier in the day. U.S. copper futures rose more than 1% to $5.90 per pound.
