Update: Gold Trading at a Fresh Record Above US$3,600 on Rate-Cut Bets and Safe-Haven Demand

02:00 PM EDT, 09/03/2025 (MT Newswires) -- (Updates prices.)

Gold traded at a record high midafternoon on Wednesday, topping US$3,600 an ounce for the first time as traders bet on a Federal Reserve rate cut and safe-haven buying rises amid stagflation concerns.

Gold for December delivery was last seen up US$44.30 to US$3,636.50 per ounce, up from Tuesday's record close of US$3,592.20.

The gain comes as markets expect the Fed to end the Sept. 17 meeting of its policy committee with a 25 basis point rate cut, lowering the carrying cost of owning gold. Safe-haven demand is also rising as U.S. President Donald Trump pressures the central bank, including attempts to fire Governor Lisa Cook and push board 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 dollar index was last seen down 0.29 points to 98.11. Treasury yields were lower, with the yield on the U.S. two-year note last seen down 1.5 basis points to 3.617%, while the 10-year was paying 4.213%, down 4.9 points.

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