Spot gold tops $3,900 for first time ever

Spot gold rises 1.25%, or $48.85, to $3,935.39 an ounce.

Gold prices surged to a record high on Monday, supported by safe-haven demand following the US government shutdown and growing expectations of further interest rate cuts by the Federal Reserve.

December gold futures rose 1.45%, or $57, to $3,965.9 an ounce, after hitting an all-time high of $3,969 earlier in the session.

Spot gold climbed 1.25%, or $48.85, to $3,935.39 an ounce at 08:24 a.m. Mecca time, marking its highest level ever.

The US dollar index, which measures the greenback against a basket of six major currencies, gained around 0.4% to trade at 98.12.

Elsewhere, December silver futures rose 0.8% to $48.33 an ounce. Spot platinum added 0.8% to $1,618.09, while palladium gained 0.3% to $1,268.85.

KCM Trade Chief Market Analyst Tim Waterer told Reuters that a weaker yen following Japan’s ruling party elections limited investors’ options for safe-haven assets, allowing gold to benefit and extend its gains.

Gold has risen 49% so far this year, after a 27% gain in 2024, supported by strong central bank purchases, higher demand for gold-backed exchange-traded funds, a weaker dollar, and increased hedging demand amid rising trade and geopolitical tensions.