Gold pierces $4400 an ounce for first time in history

Gold prices rose in European trading on Monday, extending gains for a second consecutive day and entering a new phase of record-setting highs, particularly after breaking above the $4,400-per-ounce level for the first time in history. The move was driven by strong investment demand for the precious metal and supported by a decline in the US dollar in the foreign exchange market.

These developments come amid growing bets that the Federal Reserve will cut US interest rates twice next year, especially after recent consumer price data showed easing inflationary pressures on US policymakers.

Price overview

Gold prices today: gold rose by about 1.9% to $4,420.06 per ounce, marking a new all-time high, from an opening level of $4,338.71, after touching an intraday low of $4,338.05.

At Friday’s settlement, gold prices rose 0.15%, marking the second gain in the past three days, amid relatively active safe-haven buying.

The precious metal gained 0.9% last week, recording a second consecutive weekly increase, supported by interest rate cuts in the US and the UK.

US dollar

The dollar index fell 0.15% on Monday, retreating from a one-week high and heading toward its first loss in four sessions, reflecting a pause in the dollar’s advance against a basket of major and minor currencies.

Beyond corrective moves and profit-taking, the dollar weakened following cautious comments from some Federal Reserve officials, which highlighted growing concern over softness in US labor market indicators.

US interest rates

According to the CME FedWatch tool, pricing for keeping US interest rates unchanged at the January 2026 meeting currently stands at 78%, while the probability of a 25-basis-point rate cut is priced at 22%.

Investors are currently pricing in two US interest rate cuts over the course of next year, while Federal Reserve projections point to only one 25-basis-point cut.

To reprice these expectations, investors are closely monitoring upcoming US economic data, along with comments from Federal Reserve officials.

Gold outlook

Matt Simpson, senior analyst at StoneX, said that December typically delivers positive returns for gold and silver, meaning seasonal conditions are supportive.

Simpson added that with gold already up about 4% this month and year-end approaching, investors may wish to exercise caution due to thinner trading volumes and a higher likelihood of profit-taking.

According to Reuters technical analyst Wang Tao, spot gold may rise to $4,427 per ounce after breaking through a key resistance level at $4,375.

SPDR fund

Gold holdings at SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, were unchanged on Friday for the second consecutive day, leaving total holdings steady at 1,052.54 metric tons.