New york: Gold prices surged by 1.5% on Monday, reaching an unprecedented level of $3,819.8 as of 0700GMT. This increase marks a significant milestone in the precious metal's value, reflecting a broader trend driven by various global factors.

According to Anadolu Agency, the price of gold has fluctuated between $2,536.91 and $3,819.8 over the past year, showing a substantial gain of 41.5%. The upward trajectory of gold prices is largely attributed to ongoing geopolitical tensions, apprehensions regarding the global economic outlook, heightened demand from central banks, and a cycle of interest rate cuts by the Federal Reserve.

The recent policy rate cut by the Fed, a reduction of 25 basis points, came after persistent pressure from US President Donald Trump. This move is part of a broader expectation for further rate reductions in the Fed's upcoming October and December meetings. The decision was influenced by weak inflation figures and rising unemployment data, which, along with the President's insistence, compelled the Fed to lower rates.