Gold climbs toward record as rate-cut bets fuel safe-haven demand
bullion gains lift miners in London as investors weigh geopolitical risk and prospects for U.S. rate cuts
Gold surged toward an all-time high yesterday as geopolitical tensions and expectations of Federal Reserve rate cuts boosted demand for bullion. The metal traded above $4,350 an ounce after rallying to more than that level, briefly touching the October peak of $4,381 before giving back some gains. On the year, bullion is on track to have climbed by almost 70 percent in 2025, according to market observers.
The renewed run has supported London-listed miners Fresnillo and Endeavour, with Fresnillo up around 26 percent and Endeavour up about 12 percent over the past month. In intraday trading, Endeavour rose 1.8 percent, or 64p, to 3,602p, while Fresnillo fell 1.7 percent, or 48p, to 2,856p. Both firms are on track for sizable gains for 2025, with Fresnillo having more than quadrupled in value this year.
Analysts said bullion tends to perform well in a low-interest-rate environment, and traders expect further cuts from the U.S. Federal Reserve after its latest reduction last week. Demand has also been supported by central-bank purchases, as several major holders add to bullion reserves amid ongoing global uncertainty.
Market participants note that the pace of gold’s rally will hinge on the Federal Reserve's policy path and on geopolitical developments, including tensions that could sustain safe-haven demand. While gold remains sensitive to interest-rate signaling, its role as a hedge against macro risks continues to underpin its price trajectory as 2025 moves toward its close.
