International gold prices surged significantly on Monday, with the December delivery gold futures contract on the COMEX division of the New York Mercantile Exchange briefly breaking through the 3,550 U.S. dollars per ounce mark to set a new all-time high.
Market analysts attribute the rally primarily to a weaker U.S. dollar and growing expectations that the Federal Reserve may cut interest rates later this month.
The U.S. dollar index fell to a five-week low on Monday, adding further momentum to bullion prices. According to the CME FedWatch Tool, market participants now see an 89.7 percent probability of a 25-basis-point rate cut by the Fed in September. Recent softening in the U.S. labor market has reinforced these expectations.
All eyes are now on the U.S. nonfarm payrolls report for August, scheduled for release this Friday. Analysts say the data will serve as a key indicator of the country's economic health and could significantly influence the Fed's decision-making timeline.
Supported by safe-haven demand and a favorable macroeconomic backdrop, gold posted a monthly gain of more than 5 percent in August, its strongest performance since April.
Gold prices hit record high as Fed rate cut expectations weaken dollar
