Gold prices reached new historic highs on Tuesday, extending their rally to a sixth consecutive session, as a softer US dollar and mounting speculation of a Federal Reserve rate cut later this month buoyed investor sentiment.
Spot gold rose as much as 0.9% to $3,508.73 per ounce. US gold futures for December delivery climbed 1.4%, settling at $3,563.40.
The precious metal has soared by over 30% in 2025, establishing itself as one of this year’s standout performers among major commodities. The ongoing surge is largely driven by market anticipation that the US central bank will lower borrowing costs at its upcoming September meeting, a prospect enhanced after Federal Reserve Chair Jerome Powell indicated openness to easing policy.
Traders now priced in a 90% probability to a 25-basis-point rate cut on September 17, according to the CME FedWatch tool. The outlook for rates may be further clarified by Friday’s US jobs report, which is expected to reveal continued signs of weakness in the labor market, lending additional support to gold’s appeal as a non-yielding asset.
Meanwhile, US Treasury Secretary Scott Bessent emphasized the importance of Fed independence on Monday but criticized the central bank for “making a lot of mistakes.” Bessent also defended Donald Trump’s rights to dismiss Fed Governor Lisa Cook amid allegations of mortgage fraud.
With the dollar’s retreat and dovish signals from policymakers, gold continues to shine as investors seek refuge, betting on lower yields ahead.
