Gold Price Surges Past $4,400 to Record High on Fed Easing Bets
Silver soars to a historic peak in a parallel rally as investors flock to precious metals amid mounting geopolitical risk and expectations for lower interest rates.
Gold futures surged past $4,400 an ounce for the first time on Monday, extending a powerful rally that has reshaped the precious metals landscape. The record-breaking move was fueled by growing investor conviction that the Federal Reserve will move to cut interest rates in 2026 and a heightened demand for safe-haven assets amid escalating geopolitical tensions.
The most-active February gold futures contract touched an intraday high of $4,442.55, marking a historic peak for the yellow metal. The rally puts gold on track for its strongest annual performance since 1979, with a year-to-date gain of over 67%. The spot price of gold also hit a record, with some markets seeing it trade above $4,412 an ounce.
Silver also joined the ascent, blasting to a historic high of its own. The price of silver surged to nearly $69.45 per ounce, with its rally technically outperforming gold. The industrial and investment metal has seen a year-to-date gain of approximately 138%, according to data from several market reports.
The primary driver behind the explosive move in precious metals is the market's anticipation of monetary easing from the U.S. Federal Reserve. With recent data indicating moderating inflation and a cooling labor market, investors are pricing in at least two interest rate cuts in 2026. Lower interest rates decrease the opportunity cost of holding non-yielding assets like gold and silver, boosting their appeal relative to bonds.
"Fed pause bets are fueling this breakout momentum," noted analysts at FXEmpire. The declining U.S. dollar and falling Treasury yields have created a potent environment for the metals to thrive.
At the same time, an increasingly uncertain global political climate has enhanced gold's role as a premier safe-haven asset. Heightened tensions between Israel and Iran, as well as friction involving the US and Venezuela, have prompted investors to seek shelter from potential volatility. Robust purchasing from central banks throughout the year has provided another pillar of support for the market, absorbing supply and signaling long-term official sector confidence.
Looking forward, major financial institutions see the potential for continued strength. Analysts at firms including Goldman Sachs and J.P. Morgan have issued bullish forecasts, with some projecting gold could reach the $5,000 per ounce milestone by late 2026, assuming the macroeconomic tailwinds of monetary easing and geopolitical risk persist.