Onome Amuge
Gold prices eased on Monday after touching fresh record highs, as a firmer US dollar and bouts of profit-taking tempered a rally that has been one of the strongest across global commodity markets this year. The pullback came despite continued geopolitical uncertainty and mounting expectations that the US Federal Reserve will cut interest rates further in the coming cycle.
Spot gold slipped 0.4 per cent to $4,513.55 a troy ounce, retreating from Friday’s all-time high of $4,549.71. US gold futures for February delivery were down 0.3 per cent at $4,536.80 an ounce.
The recent rally has been underpinned by growing conviction among investors that US monetary policy will turn decisively more accommodative. Markets have increasingly priced in a faster and deeper easing cycle in 2026 as inflation shows clearer signs of cooling.
The dollar’s softness over much of the year has been a key tailwind for bullion, reinforcing gold’s appeal to international investors. Even with Monday’s rebound in the US currency, analysts said the underlying drivers of the gold rally remained intact.
Gold has delivered an exceptional performance this year, rising more than 72 per cent since January and consistently outperforming most major asset classes. Strategists attribute the rise to a confluence of factors, including sustained purchases by central banks seeking to diversify reserves, strong inflows into gold-backed exchange-traded funds and heightened demand from investors hedging against currency volatility and macroeconomic uncertainty.
Persistent geopolitical risks have also played a central role. Conflicts in eastern Europe and the Middle East, alongside broader concerns about global political fragmentation, have reinforced gold’s status as a safe-haven asset. On Monday, however, some of that support faded at the margin after US-led talks aimed at ending the war in Ukraine failed to deliver a clear breakthrough. While any durable peace agreement could ultimately weigh on bullion by reducing risk premiums, market participants noted that recent diplomatic efforts have yet to alter the broader risk landscape.
Other precious metals largely held on to gains following strong rallies of their own. Silver climbed to a fresh record high of $83.62 an ounce, benefiting from its dual role as both a safe-haven asset and an industrial metal, particularly in renewable energy and electronics. Platinum, by contrast, edged lower after briefly touching a record peak of $2,478.50 an ounce earlier in the session.
Platinum’s rise this year has been driven by supply constraints and improving demand prospects from the automotive and industrial sectors, where substitution dynamics and tighter emissions standards have supported consumption. Analysts caution, however, that price volatility is likely to remain elevated across the precious metals complex as investors reassess growth and policy expectations.
Industrial metals also saw sharp moves. Benchmark copper futures on the London Metal Exchange rose nearly 7 per cent to $12,937.90 a tonne, after briefly trading as high as $12,966.25 earlier in the day. In the US, copper futures rose more than 1 per cent to $5.90 a pound, reflecting tight supply conditions and renewed optimism around long-term demand linked to electrification and infrastructure spending.
