Gold prices soared to fresh record highs this week, lifting global markets and miners, with analysts predicting the bull run has more room to shine. Spot gold surged past $3,728 per ounce on Monday, while futures climbed even higher, fueled by speculation of looming U.S. Federal Reserve rate cuts. Investors are closely watching for policy signals that could extend the rally further.
Spot Gold Hits Record
Spot gold prices jumped more than 1% to touch $3,728.11 per troy ounce on Monday, surpassing the previous record. At the close of the London equity market, gold was quoted at $3,729.11, significantly higher than Friday’s $3,670.59. The surge reflects mounting investor demand for safe-haven assets amid economic uncertainty.
Futures Market Strengthens
December gold futures also staged a strong rally, gaining 1.38% to hover around $3,757 at the time of writing. The jump highlights continued bullish sentiment in the commodities market, with traders pricing in possible rate cuts and weakening U.S. economic data.
Analyst Predicts New Highs
UBS analyst Giovanni Staunovo told Reuters, “I would expect gold to reach new record highs this week with Fed officials likely to indicate further rate cuts, but also being data dependent on the pace and magnitude of cuts.” His remarks underscore investor expectations of central bank policy driving near-term momentum.
Citi’s Bullish Outlook
Citigroup also issued a bullish forecast, setting a three-month price target of $3,800 per ounce. In a research note, the broker said, “Just about everything is going right for the gold bull market at the moment.” Citi pointed to both cyclical and structural drivers supporting gold’s strength in the coming months.
Drivers Behind the Surge
Citi noted that cyclical drivers such as a weakening U.S. labor market and tariff-related global growth concerns continue to boost demand for gold. At the same time, structural issues like rising U.S. debt, questions over the dollar’s global reserve status, and challenges to Federal Reserve independence are also fueling long-term support for the yellow metal.
Impact on UK Stocks
The rally in gold prices lifted gold miners and supported the FTSE 100 index, which ended the session up 10.01 points, or 0.1%, at 9,226.68. The FTSE 250 gained seven points to close at 21,596.93, while the AIM All-Share advanced 3.93 points, or 0.5%, to 777.53. Analysts say gold-linked stocks are likely to benefit further if the bullish trend continues.
Outlook for Investors
With both cyclical and structural factors aligned, market watchers expect gold to maintain its strength in the near term. Investors will closely monitor upcoming Federal Reserve statements for clarity on rate cuts, which could act as the next catalyst for the precious metal.