Update: Gold Rises to a Fresh Record Ahead of an Expected Cut to U.S. Interest Rates

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

Gold continued its record run midafternoon on Tuesday, climbing again on expectations the Federal Reserve is likely to begin lowering interest rates as the U.S. economy falters.

Gold for December delivery was last seen up US$7.40 to US$3.684.80 per ounce, rising from Monday's record close of US$3,677.40.

The price of the metal is up 45% over the past 12 months, pushed up by physical demand from Asia, safe-haven buying on violence in the Middle East and a weakening U.S. dollar. However expectations the Federal Reserve will begin a new cycle of cutting interest rates beginning next week as the U.S. economy slows amid concerns over the central bank's independence has backed the latest record run.

"Bullion has rallied more than 8% since Trump tried to sack Lisa Cook, thereby threatening the independence of the Fed while triggering a technical price breakout. Since then, weak US jobs numbers and technical momentum have driven prices to current-and increasingly overbought-levels," Saxo Bank noted.

The dollar was higher early, with the ICE dollar index last seen up 0.25 points to 97.7. Treasury yields also rose, with the U.S. two-year note paying 3.542%, up 4.5 basis points, while the yield on the 10-year note was up 2.9 points to 4.072%.

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