US economic consternation, structural global financial shifts behind skyrocketing gold prices: experts

Doha: Gold and silver prices recorded unprecedented historic skyrocketing in Monday s trading, with the yellow metal breaking the USD 4,400‑per‑ounce...

Doha: Gold and silver prices recorded unprecedented historic skyrocketing in Monday's trading, with the yellow metal breaking the USD 4,400‑per‑ounce barrier, driven by US economic data showing weakness in the labor market and a decline in inflation rates, further bolstering market bets on a Federal Reserve interest rate cut in January 2026.

Spot gold prices rose by about 1.3  percent, reaching USD 4,398.12 per ounce, while US gold futures increased by 1.02  percent to USD 4,432.20 per ounce.

These price surges coincided with silver climbing more than 3  percent to around USD 69, alongside platinum and palladium hitting their highest levels in years, at a time when markets are witnessing intense physical demand well beyond mere paper speculation.

Qatar News Agency (QNA) reached Ramzi Qasmieh, Investment Director at Qatar Securities Company, who affirmed that these record highs in gold prices have been attributed to multiple factors, primarily the fact that markets are increasingly pricing in bets on US Federal Reserve interest rate cuts in 2026, after softer-than-expected US labor market data.

Gold is also benefiting from a weaker US dollar, which is hovering near its lowest levels since 2022, having dropped more than 10  percent since the start of the year, amid concerns that the US economy may enter a stagflationary phase, Qasmieh highlighted.