Gold costs climbed to an all-time high on Tuesday, extending positive aspects to a sixth session on the again of a weaker greenback and rising bets of a U.S. curiosity rate cut this month.
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Gold costs scaled the $3,500 per ounce degree to hit a document high on Tuesday, as mounting expectations for a U.S. Federal Reserve curiosity rate cut this month lifted demand for the dear metallic.
Spot gold was regular at $3,476.48 per ounce, after hitting a document high of $3,508.50 earlier within the session. Bullion has gained 32% to this point this yr. U.S. gold futures for December supply gained 0.9% to $3,546.80.
“Gold’s rally is set to be heavily influenced by how much the Fed’s rate-cutting path adheres to market projections,” mentioned Han Tan, chief market analyst at Nemo.cash.
“It still enjoys enough fundamental tailwinds, from central bank purchases to safe-haven demand – especially if trade tariffs take a meaningful toll on global economic growth – going into next year,” he added.
Traders are presently pricing in a 90% probability of a 25-basis-point Fed rate cut on September 17, in accordance to the CME FedWatch device. Non-yielding gold usually performs effectively in a low-interest-rate surroundings.
Long thought to be a reliable hedge in opposition to geopolitical and financial turmoil, gold has rallied to a number of document highs in 2025, drawing assist from ongoing central financial institution shopping for amid a transfer away from the U.S. greenback, robust safe-haven demand in gentle of geopolitical and commerce uncertainty, plus broad greenback weak point, analysts say. Spot gold costs rose 27% in 2024, and broke the $3,000 per ounce degree for the primary time in March this yr as uncertainty round U.S. President Donald Trump’s commerce insurance policies despatched buyers flocking to the safe-haven asset. Meanwhile, Trump has criticised the Fed and its chair, Jerome Powell, for months for not reducing rates of interest.
Investors at the moment are trying ahead to the U.S. nonfarm payrolls knowledge due on Friday to decide the dimensions of an anticipated Fed rate cut later this month.
“All the indicators – fundamental and technical – point toward a sustained rally. As always, we might not go up in a straight line, but we are in ‘buy the dip’ mode… plus, gold remains an uncorrelated asset to stocks, real estate, and credit,” mentioned Hugo Pascal, a valuable metals dealer at InProved.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, mentioned its holdings rose 1.01% to 977.68 tons on Friday – its highest degree since August 2022.
In a quarterly Reuters ballot carried out in July, analysts forecast gold would common $3,220 in 2025, up from January’s estimate of $2,756/oz.