Gold rises nearly 2% on safe-haven demand

December gold futures rose 1.25% to $3,751.80 an ounce after touching $3,753.40

Gold prices climbed on Monday, lifted by safe-haven demand amid ongoing geopolitical tensions and investor optimism after the Federal Reserve cut interest rates last week.

December gold futures rose 1.87%, or $69.3, to settle at $3,775.1 an ounce.

Gains came after the Fed resumed monetary easing last week, following a year of holding rates steady in 2025. Chair Jerome Powell said the cut was a risk-management move given weakness in the labor market.

Speaking at the Economic Club of New York, Fed Governor Stephen Miran on Monday called for a sharp 2% rate cut, arguing the current level is “excessively restrictive” in light of recent economic shifts.

Other Fed voices struck a more cautious tone. St. Louis Fed President Alberto Musalem said last week’s move was a “precautionary step” and that scope for further easing was limited.

Meanwhile, global geopolitical tensions escalated after Russian fighter jets and drones violated the airspace of NATO member states, prompting Poland’s prime minister to warn that his country could shoot down any aircraft breaching its skies.