Gold prices climbed to an all-time high during Monday’s Asian session after United States economic data drove expectations of further interest rate cuts.
Spot gold prices increased by 1.0% to US$4,399.20 per ounce, as of 3:55 pm AEDT (4:55 am GMT).
Silver also rose 3.28% to $69.30. Both gold and silver are on course for their strongest annual performance since 1979.
“Central bank buying formed the backbone of gold’s resilience at elevated levels” during 2025, wrote Pepperstone research strategist Dilin Wu. “Concerns over U.S. fiscal sustainability and the erosion of dollar credibility have accelerated reserve diversification.”
Goldman Sachs predicted last week that gold would continue to reach records in 2026, with a base case of $4,900 per ounce.
U.S. inflation rose 2.7% year-over-year in November, the Bureau of Labor Statistics said last week, down from 3% in September and below forecasts. Data collection was impacted by the 43-day government shutdown, which led to the cancellation of October’s consumer price index report.
Unemployment rates grew to 4.6%, their highest point since 2021.
The Federal Reserve cut rates for a third time in 2025 last week. Markets are pricing in two rate cuts next year, though traders currently project a 79% chance that rates will remain unchanged at 3.50-3.75% at the Fed’s January meeting, per CME FedWatch.
Cleveland Fed President Beth Hammack has said that she favours leaving rates steady during 2026’s first quarter. Hammack will be a voting member of the Federal Open Market Committee next year.
“Where we are today is my base case that we can stay here for some period of time until we get clearer evidence that either inflation is coming back down to target or the employment side is weakening more materially,” Hammack told the Wall Street Journal’s Take on the Week podcast on Sunday (Monday AEDT).
