Gold hits record high as ETF inflows surge and Fed rate cut hopes rise

[Gold price rising concept with business graph on bullion background]
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Gold prices notched a record high on Monday after flows into exchange-traded funds hit a three-year high, while investors also hope that the Federal Reserve’s interest rate cuts still have room to continue.

Silver also rose, with year-to-date gains topping 50%.

The yellow metal (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) was up 1.1% at $3,724 an ounce at the time of writing, after hitting a record high of $3,726.19 earlier in the session. The momentum builds on a run of five weekly gains after the Fed flagged further easing through year-end.

On Friday, bullion-backed ETFs surged 0.9%, the most in percentage terms since 2022, according to data compiled by _Bloomberg_.

"The rally is underpinned by strong ETF demand, lower funding costs, and a cocktail of macro risks – Fed independence, U.S. fiscal sustainability, geopolitical flare-ups, and even the possibility of a U.S. government shutdown," Ole Hansen, Saxo Bank's head of commodity strategy, said.

"Importantly, four consecutive days of broad dollar strength have not derailed bullion’s advance, underscoring the depth of momentum."

Markets now turn to fresh data, including European activity gauges and Friday’s U.S. PCE inflation report.

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