Driven by heightened expectations of Fed rate cuts and a weaker US dollar, precious metals surged on Monday. Gold prices climbed to a six-week high, while silver broke its all-time record, emerging as one of the year's top-performing assets. Spot gold peaked at $4,232.12, its highest level since October 21, while spot silver soared to a historic high of $58.854. Silver has surged over 100% year-to-date, far outpacing other asset classes.

The US dollar's drop to a two-week low made gold more affordable for foreign investors, boosting its appeal. David Meger, Head of Metals Trading at High Ridge Futures, noted, "Expectations of further rate cuts, coupled with inflation remaining above the Fed's target, continue to support gold and silver prices."

Traders now price in an 87% chance of a December Fed rate cut, fueled by weak US economic data and dovish remarks from Fed officials, including Governor Waller and New York Fed President Williams. Lower interest rates typically benefit non-yielding assets like gold and silver.

This week, investors will focus on key US economic data, including November's ADP employment report on Wednesday and the delayed September PCE price index—the Fed's preferred inflation gauge—due Friday after a government shutdown. Fed Chair Powell is set to speak later Monday, with markets anticipating further policy clues.

Speculation about a more dovish incoming Fed chair also lifted precious metals. White House economic advisor Hassett expressed willingness to take the role if selected, while Treasury Secretary Besant hinted at an announcement before Christmas. Meger added, "We maintain that gold and silver remain in a strong neutral-to-bullish trend."