The price of the safe-haven precious metal climbed to fresh highs on Tuesday morning, reaching $3,508 an ounce before later settling lower.
Gold climbed to a fresh all-time high this week, moving past $3,500 an ounce on Tuesday morning. The gold price rally was fuelled by expectations of US Federal Reserve (Fed) rate cuts and ongoing political uncertainty.
The precious metal briefly reached $3,508 in the Asian trading session. By doing so, it surpassed April’s peak before settling slightly lower during the London morning session. So far this year, the gold price has risen more than 30%, making it one of the strongest performing major commodities.
Geopolitical tensions and domestic US politics are adding to gold’s popularity, with investors attracted by the safe-haven asset. Gold prices rose 27% in 2024 and surpassed the $3,000 per ounce level for the first time in March this year.
Why did gold hit a new record price?
The gold rally reflects weaker confidence in US assets and speculation around potential Fed policy easing. Markets are anticipating a 25-basis-point reduction on 17 September, with a 90% probability priced in by futures data. Investors are also awaiting Friday’s key US jobs report, which could reinforce arguments for swift monetary easing.
Recently, Fed Chair Jerome Powell’s offered several hints relating to a possible future rate cut. This has encouraged traders to increase their exposure to non-yielding metals such as gold, which typically perform well in low-interest-rate environments.
Moreover, UBS analyst Giovanni Staunovo has noted that central banks will continue diversifying into gold, supporting further demand. He added that strong investment flows suggest this rally remains sustainable, with room for higher levels ahead.
Silver price also surges in value
Silver has also seen strong gains, climbing more than 40% in 2025 and breaking $40 an ounce for the first time since 2011. Demand for the metal is supported by both safe-haven buying and its vital role in clean-energy technology.
Forecasts from the Silver Institute predict another supply deficit this year, extending a five-year trend of tight availability in global markets. Exchange-traded funds backed by silver have seen seven straight months of inflows, draining London inventories and pushing lease rates higher.
Meanwhile, the Bloomberg Dollar Spot Index rose 0.1% in London, though the greenback’s broader weakness has helped support both gold and silver. A soft dollar environment could lead to increased buying power in China and India, the world’s largest precious metals consumers.
As for the price of various other precious metals, platinum edged higher while palladium slipped during the latest session. Spot gold stood at $3,484.61, silver hovered near $40.67, and futures contracts showed momentum continuing into September.
Some forecasters see gold reaching $3,600 soon, while silver could test $46 if current conditions hold. A recent Reuters poll predicted an average gold price of $3,220 in 2025 and $3,400 in 2026.
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