Gold Hits Record High Amid U.S. Rate Cut Speculation and Political Uncertainty

Gold surged to an all-time high of $3,833.37 as investors sought refuge in the precious metal amid growing expectations of Federal Reserve rate cuts and political gridlock in Washington. Spot prices held firm at $3,829, while December futures closed at $3,855.20, marking a 1.2% gain.

The dollar index dipped 0.2%, enhancing gold's appeal for international buyers. Market analysts attribute the rally to safe-haven demand, fueled by potential U.S. government shutdown risks and renewed global conflicts. David Meger of High Ridge Futures noted, "The dollar's mild pressure is supporting the precious metals complex."

Gold's year-to-date rally now exceeds 43%, with traders pricing in Fed easing as early as October. Friday's PCE data aligned with forecasts, reinforcing confidence in the central bank's capacity to cut rates.