The price of gold reached a new all-time high on Monday, surging by as much as 3% to trade at $2,135 per troy ounce as the US dollar experienced a decline. This significant increase in the value of the precious yellow metal hasn't been witnessed since August 2020 when it reached its previous record-setting price of $2,072.49 per troy ounce.

The surge in gold's price is part of a rally that began in November 2022 and has been inversely correlated to the US dollar, which has weakened due to growing global volatility generated by conflicts in Ukraine and Israel. The dollar witnessed a month-over-month decrease of 3.1% against a basket of six other currencies, hovering slightly above its four-month low.

The decline in the US dollar, along with a drop in US Treasury yields, has prompted investors to anticipate an impending interest rate cut by the Federal Reserve. This sentiment aligns with the view of hedge fund billionaire Bill Ackman, who predicts a reduction in the benchmark federal funds rate from its current high of between 5.25% and 5.5%, possibly as early as the first quarter. Ackman warns of the risk of a "hard landing" for the US economy if necessary measures aren't taken.

Jamie Dimon, the CEO of JPMorgan, has also cautioned Wall Street to prepare for a possible recession. Dimon believes that the threat of rising interest rates, coupled with slowing inflation, poses significant challenges to the economy. His comments indicate that he does not anticipate a rate cut following the upcoming Federal Open Market Committee meeting on December 11 and 12.

Economists remain divided on the next move of central bankers and what it signifies for the US economy. Those anticipating an interest rate cut point to a weaker-than-expected October jobs report, where only 150,000 jobs were added, slightly above the Fed's year-end forecast. Additionally, inflation has been milder than central bankers' projections, providing relief from the Fed's aggressive tightening cycle.

On the other hand, those forecasting a recession highlight the unprecedented pace at which interest rates have increased in the last year, with the Fed refraining from any rate cuts in spite of falling inflation. The latest Consumer Price Index indicates that US inflation slowed to 3.2% in October, a deceleration from September's 3.7%, but still above the Federal Reserve's target of 2%.

As uncertainty looms over the US economy, the price of gold continues to rise, buoyed by the weakening US dollar. The market anxiously awaits the Federal Reserve's decision on interest rates and monitors economic indicators for signs of a potential recession.

Note: This news article is based solely on the information provided and does not reflect the actual state of the economy or financial markets.