Gold surges to record high above US$3,600 as Fed rate cut looms
Gold hits a historic high above US$3,600 on Fed rate cut bets, with weak US jobs data fuelling expectations of easing into early 2026.
Gold prices soared to a historic peak above US$3,600 per ounce on Monday, driven by expectations that the US Federal Reserve will cut interest rates next week following weak US jobs data, according to Reuters.
Spot gold jumped 1.3% to US$3,634.25 at 2.26pm, touching an all-time high of US$3,646.29. US gold futures for December delivery settled 0.7% higher at US$3,677.40.
Peter Grant, vice president and senior metals strategist at Zaner Metals, said the precious metal could climb further to US$3,700–3,730, adding that any dip in prices would present a buying opportunity.
US non-farm payrolls data released on Friday showed a sharp slowdown in August hiring, reinforcing bets of a rate cut. CME’s FedWatch tool indicated an 88% probability of a 0.25% cut in September and a 12% chance of a 0.50% reduction.
Grant noted that weakening labour conditions and prospects of Fed easing into early 2026 could provide prolonged support for bullion.
Gold has surged 38% this year, after a 27% rally in 2024, underpinned by a weaker dollar, central bank buying, dovish rate outlooks, and rising geopolitical risks. Official data showed the People’s Bank of China increased its gold holdings for the 10th consecutive month in August.
Meanwhile, the benchmark US 10-year Treasury yield hovered near a five-month low. Investors are now awaiting US producer price index data on Wednesday and consumer price index figures on Thursday for further policy signals.
“Should US data remain weak, the gold bull market should extend, with both the dollar and Treasury yields heading lower,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. He cautioned, however, that stronger-than-expected data could trigger a pullback.
Spot silver rose 0.8% to US$41.29 per ounce, its highest since September 2011. Platinum gained 0.6% to US$1,381.49, while palladium climbed 2.1% to US$1,132.87.
In Asian trading on Tuesday morning (September 9), gold held steady at US$3,635.07 per ounce at 8.05am Singapore time, about US$10 below its record high. The Bloomberg Dollar Spot Index remained flat as the US currency weakened, while platinum and palladium edged higher.
Gold has gained 2.5% in the past two sessions following unexpectedly soft US jobs data, with investors now anticipating three rate cuts this year, including one next week.
