Gold climbed more than 1% on Tuesday, breaking through the $3,500 mark per ounce and reaching an all-time high. The rally was fueled by growing expectations of a Federal Reserve rate cut in September and ongoing political and economic risks. Spot gold hit $3,529.93 per ounce, while U.S. gold futures for December delivery settled 2.2% higher at $3,592.20. The metal has already gained 34.5% this year.
Analysts point to several drivers behind gold’s record run: consistent central bank purchases, diversification away from the U.S. dollar, robust safe-haven demand during geopolitical tensions, and a broadly weaker dollar. Jewellery demand, especially during the seasonally strong period, has also added support.
Uncertainty around U.S. policy under President Donald Trump has increased gold’s appeal. His disputes with the Fed and criticism of key officials have raised concerns over the central bank’s independence, which analysts say makes gold a more attractive investment.
Markets now await U.S. nonfarm payroll data for further direction. A weak jobs report could intensify speculation about a larger rate cut, although most analysts see only a 25 basis point reduction likely. Meanwhile, ETF inflows are reinforcing momentum, with the SPDR Gold Trust holdings rising to their highest level since 2022.
Looking ahead, strategists at J.P. Morgan expect gold to reach $3,675 by the end of this year, with potential for $4,250 by 2026. Other precious metals showed mixed movements: silver edged up to $40.84 per ounce, platinum slipped slightly to $1,397.16, and palladium held steady at $1,137.33.
Powered by Markelitics.com
Join our signal room and start receiving expert trading signals for free! Get insights and strategies to enhance your trading experience.
