Gold Hits Fresh Record as Fed Rate Cut Expectations Grow

Gold surged to another record high on Sept. 9 as anticipation grows for a US interest rate cut next week. Spot gold climbed to US$3,673.4/oz, surpassing Monday’s record of US$3,636.71/oz, before easing to US$3,646.64/oz by midday ET, still up 0.3% on the day. US gold futures peaked at US$3,715.20 before retreating to around US$3,680.

So far in 2025, gold has gained nearly 40%, setting multiple records amid a weaker dollar, strong central bank demand, and mounting global uncertainty. Since touching US$3,500 in April, bullion traded in a narrow range as investors tracked US monetary policy and the impact of new global tariffs introduced by President Donald Trump.

The recent rally reflects expectations that the Federal Reserve will start cutting interest rates after fresh data signaled an economic slowdown. Lower rates tend to boost demand for non-yielding assets like gold. “This rally is largely driven by expectations that the Fed will begin cutting rates, potentially as early as September,” said Bart Melek, Head, TD Securities.

Traders are widely pricing in a 25-basis-point cut at next week’s FOMC meeting, with some betting on a larger 50-point move. Upcoming US inflation data will provide more clues. John Ciampaglia, CEO, Sprott Asset Management, noted: “We remain very bullish, even at US$3,600, because tariff policy, trade relations, and geopolitics continue to support gold.”