Gold prices march on to fresh record high

Gold hit another record high on Tuesday, holding well above the $3,600-mark crossed in the previous session, as growing bets of a US rate cut weakened the dollar and pushed bond yields lower, boosting demand for the precious metal.

Spot gold was up 0.5% at $3,653.25 per ounce, as of 1120 GMT, after hitting a record high of $3,659.10 earlier in the session.

US gold futures for December delivery rose 0.4% higher to $3,692.40.

Gold prices have gained nearly 39% this year, following a 27% jump in 2024, bolstered by a soft dollar, strong central bank accumulation, dovish monetary policy and heightened global uncertainty.

The dollar index fell to a near seven-week low against rivals, making gold more attractive to other currency holders, while benchmark US 10-year Treasury yields held near five-month lows.

“Bulls have been energized by the market’s rate cut convictions, sending gold to fresh record highs. The softer dollar also helped pave the way for $3,600, while bullion-backed inflows and central bank purchases add to the strong mix of tailwinds,” said Han Tan, chief market analyst at Nemo.money.

Traders expect an 88% chance of a 25-basis-point Federal Reserve rate cut next week and a 12% probability of a jumbo 50-bp reduction, CME Group’s FedWatch tool showed.

This comes after Friday’s data showed US job growth weakened sharply in August.

Reuters