SINGAPORE, 1 September 2025 – Gold prices surged to their highest level in over four months on Monday as traders raised bets that the U.S. Federal Reserve will cut interest rates later this month, boosting the appeal of non-yielding assets.
According to Reuters data, spot gold climbed 0.7% to US$3,470.69 per ounce by 0238 GMT, its strongest since April 23, while U.S. gold futures advanced 0.8% to US$3,543.70. Silver also staged a sharp rally, jumping 1.6% to US$40.31—crossing the US$40 threshold for the first time since September 2011.
The rally came after the release of the latest U.S. Personal Consumption Expenditures (PCE) inflation data, which met forecasts and strengthened expectations of a shift toward looser monetary policy. Market trackers, including the CME FedWatch tool, now place the probability of a 25-basis-point rate cut at 87% for September. Lower rates reduce the opportunity cost of holding bullion, typically spurring demand.
Investor Focus Turns to U.S. Jobs Data
Markets are now turning attention to the September 5 U.S. nonfarm payrolls report, which will provide further clues on the Fed’s next policy steps. Analysts say any signs of cooling in the labor market could cement the case for a rate cut, extending support for precious metals.
Other precious metals also posted gains, with platinum up 0.9% to US$1,376.95 and palladium climbing 0.8% to US$1,118.12, underscoring the sector’s resilience amid global economic uncertainty.
Asia’s Investor Sentiment
For Asia’s markets, the sharp rally in bullion highlights a broader pivot toward safe-haven assets as volatility persists in equities and currencies. In key financial hubs such as Hong Kong, Singapore, and Kuala Lumpur, analysts expect sustained investor interest in gold-backed ETFs and physical bullion as hedges against macroeconomic uncertainty.
