2025.09.0914:16:54UTC+00Gold Hits Record on Fed Cut Bets

Gold prices soared to a record high, reaching $3,660 per ounce on Tuesday. This surge was fueled by increasing expectations that the Federal Reserve will implement interest rate reductions by the end of the year, prompted by indicators of a cooling labor market in the United States. Recent revisions to the Nonfarm Payrolls data revealed that from March 2024 to March 2025, the economy actually added 911,000 fewer jobs than initially estimated, with final adjustments expected by February 2026. This follows a previous downward revision of 818,000 jobs. Last week's series of disappointing labor market reports led markets to anticipate three rate cuts this year, including a potential 25 basis point decrease at the Fed's meeting next week. Investors are now focusing on upcoming inflation data due later this week for additional policy insights. Beyond monetary policy expectations, gold's appeal is bolstered by its status as a safe-haven asset amid ongoing uncertainty related to U.S. tariffs and geopolitical tensions. So far this year, gold has climbed 39%, driven by the weakening US dollar, significant central bank acquisitions, dovish monetary policies, and heightened global tensions.