Gold prices rallied more than 2% on Monday as investors flocked to the precious metal amid a weakening U.S. dollar and growing economic uncertainty. With the Federal Reserve’s next policy announcement just days away, gold’s safe-haven appeal has returned to the spotlight.
Spot gold jumped 2.3% to US$3,315.09 an ounce, while U.S. gold futures climbed 2.4% to settle at US$3,322.30 — extending the metal’s impressive performance in 2025.
Weaker Dollar Boosts Gold’s Appeal
The U.S. dollar index slipped 0.1%, making gold more affordable for international buyers and helping to lift prices. As the dollar softens, bullion typically benefits, reinforcing gold’s role as a reliable store of value.
Safe-Haven Buying Accelerates Ahead of Fed Decision
With markets on edge over interest rates and trade policy, investors are leaning into gold for protection. According to Jim Wyckoff of Kitco Metals, “We’re seeing steady safe-haven inflows. Gold prices look set to remain above the US$3,000 level in the near term.”
The Federal Reserve is widely expected to hold rates steady at 4.25%–4.50%, but Fed Chair Jerome Powell’s Wednesday comments will be key for future direction. Some analysts suggest this may be the last predictable meeting, especially with President Trump’s surprise 100% tariff on foreign films raising fresh concerns about trade tensions and global growth.
Gold Continues to Outperform in 2025
Gold has already gained over 26% year-to-date, supported by geopolitical volatility, sticky inflation, and expectations of lower interest rates later this year. The yellow metal has broken multiple records and remains a favourite for investors hedging against economic uncertainty.
Goldman Sachs predicts gold will continue to outperform silver, though the bank also sees silver benefiting from a potential rebound in gold demand in 2025.
Other Precious Metals Mixed
Spot silver rose 1% to US$32.31 an ounce, following gold’s upward momentum.
Platinum slipped 0.4% to US$956.05, while
Palladium dropped 1.5% to US$939.55 amid weaker industrial demand.
