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Gold Hits Fresh Record Above US$3,600 on Rate-Cut Bets, Safe-Haven Demand

BY MT Newswires | ECONOMIC | 09/03/25 09:50 AM EDT

09:50 AM EDT, 09/03/2025 (MT Newswires) -- Gold rose to a record high early Wednesday, topping US$3,600 an ounce for the first time as traders bet on Federal Reserve rate cuts and sought safe-haven assets amid stagflation concerns.

Gold for December delivery was last up US$18.80 at US$3,611.00 an ounce after Tuesday's record close of US$3,592.20.

The gain comes as markets expect the Fed to end its Sept. 17 meeting with a 25-basis-point rate cut, lowering the carrying cost of owning gold. Safe-haven demand is also rising as US President Donald Trump pressures the central bank, including attempts to fire Governor Lisa Cook and push Chair Jerome Powell for deeper cuts, even as tariffs threaten to slow growth and raise inflation.

"Markets now price a near-certain Federal Reserve rate cut in September, with further and potentially accelerated easing into year-end should economic data weaken amid tariff strains ... However, the bullish narrative is not just about cuts. Governance concerns have added a premium in recent weeks," said Ole Hansen, head of commodity strategy at Saxo Bank.

He added that Treasury Secretary Scott Bessent will soon begin the process of finding the next Fed chair.

The ICE US dollar index was last down 0.05 at 98.35. Treasury yields edged higher, with the two-year note last up 1.5 basis points at 3.66% and the 10-year yield at 4.272%, up 0.9 points.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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