Gold prices soared to a new record above $3,500 an ounce on Tuesday amid growing expectations that the Federal Reserve will cut interest rates this month. Spot gold briefly climbed past $3,508 during New York trading, surpassing its April intraday peak, and later hovered near $3,600.
The precious metal has surged roughly 33% in 2025, outpacing most major assets as investors shift toward safe-haven investments and away from rate-sensitive trades. UBS strategist Joni Teves said investors adding gold allocations in anticipation of Fed rate cuts are pushing prices higher, with expectations for gold to continue setting new highs in the coming quarters.
Market optimism is fueled by Fed Chair Jerome Powell’s recent remarks at Jackson Hole, where he “opened the door” to the first rate cut since December 2024, while pledging to “proceed carefully.” A cooling labor market has further bolstered these expectations. The upcoming jobs report, due this Friday, will provide more clarity on the Fed’s next move.
Silver also rallied, surpassing $40 an ounce for the first time since 2011, marking nearly 40% gains year-to-date. Silver benefits from gold’s safe-haven appeal and increased industrial demand linked to solar energy and clean-energy projects.
ETFs have been steadily buying for seven consecutive months, depleting inventories in London and keeping lease rates high.
Meanwhile, Wall Street started September on shaky ground, with the Dow Jones Industrial Average dropping 441 points (1%), the S&P 500 falling 1.3%, and the Nasdaq sliding 1.6%. This marked the Nasdaq’s first back-to-back 1% drop since April, when President Trump announced sweeping tariffs—adding to investor anxiety and boosting demand for haven assets like gold.
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