NEW YORK/SINGAPORE, 9 September 2025 — Gold prices continue to hover near unprecedented levels, buoyed by growing market expectations of a U.S. Federal Reserve interest rate cut and a broader trend toward safe-haven investments. Soft U.S. labor data, coupled with mounting political uncertainty, have enhanced gold’s appeal amid a weakening dollar and declining Treasury yields.
On Monday, spot gold climbed 1.3% to $3,634.25 per ounce, briefly touching a record high of $3,646.29. December gold futures also rallied, rising approximately 0.7% to around $3,677.40, signaling bullish sentiment in futures markets.
Analysts anticipate further upside for gold, forecasting potential near-term gains toward $3,700–$3,730. Peter Grant, VP and Senior Metals Strategist at Zaner Metals, described the prevailing dynamics as “continued labor market softness and expectations of ongoing Fed rate cuts into early 2026” that are sustainable catalysts for bullion demand.
This year, gold has surged roughly 37%, adding on to a 27% gain in 2024—a run powered by a weaker U.S. dollar, aggressive central bank purchases, dovish U.S. monetary policy signals, and broader geopolitical instability. Notably, China’s central bank extended its gold accumulation streak into a tenth consecutive month in August, reinforcing confidence in gold’s long-term value.
The dovish stance from the Fed is reinforcing this trajectory. Market pricing now reflects an 88% probability of a 25-basis-point rate cut in September, with a non-negligible 12% chance of a half-point cut, according to CME’s FedWatch tool. These rate expectations reduce the opportunity cost of holding non-yielding assets like gold, making them more attractive.
On broader global markets, treasury yields are near five-month lows, with political instability—particularly in Japan and France—further dampening investor appetite for riskier assets. Against this backdrop, gold continues to shine as a reliable safe haven.
Source: Reuters
