Gold climbs to fresh high amid Fed uncertainty

SINGAPORE: Gold prices soared to a fresh record on Tuesday, continuing their rally for a sixth straight session as a weaker dollar and rising expectations of a US interest rate cut drew investors toward the safe-haven metal.

Spot gold climbed 0.5 percent to $3,492.26 per ounce by 0157 GMT, after earlier touching an all-time high of $3,508.50. US gold futures for December delivery were even stronger, rising 1.4 percent to $3,563.40.

Dollar under pressure

Analysts say the metal’s surge is being powered by concerns over the economic outlook and growing bets that the Federal Reserve will ease rates when it meets on September 17. According to the CME FedWatch tool, traders see a 90 percent chance of a quarter-point cut.

“Gold is benefiting from the weaker economic backdrop and expectations of US rate cuts,” said Kyle Rodda, a financial market analyst at Capital.com. “Another driver is the confidence crisis in dollar assets, fuelled by President Trump’s repeated criticism of the Fed.”

The US president has been openly at odds with Fed Chair Jerome Powell, accusing him of failing to lower borrowing costs. Trump also recently attacked Powell over the expensive renovation of the central bank’s Washington headquarters.

Adding to the political drama, Treasury Secretary Scott Bessent insisted on Monday that the Fed remains independent, though he acknowledged it had “made a lot of mistakes.” He defended Trump’s decision to dismiss Fed Governor Lisa Cook, who is facing allegations of mortgage fraud.

Investors eye data

The prospect of easier policy has taken a toll on the dollar, which is now near its lowest level in more than a month against major currencies. That slide makes gold cheaper for buyers using other currencies, giving the metal an extra lift.

Last week’s data showed the US personal consumption expenditures price index rose 0.2 percent in July and 2.6 percent year-on-year, matching forecasts. Attention now turns to Friday’s non-farm payrolls report, which could shape the size of the Fed’s upcoming cut.

Other precious metals

In other markets, silver slipped 1.5 percent to $40.61 an ounce after hitting its highest level since September 2011 a day earlier. Platinum gained 1.6 percent to $1,417.16, while palladium dipped 0.9 percent to $1,126.63.

Gold prices in Pakistan hit fresh record

Gold prices in Pakistan climbed to another all-time high on Monday, September 1, 2025, extending the sharp upward momentum seen at the close of August.

The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that the price of gold per tola rose by Rs3,300 during the day, settling at Rs370,700. The rate for 10 grammes increased by Rs2,829 to reach Rs317,815.

This latest surge comes just two days after gold had touched Rs367,400 per tola on Saturday, following a daily jump of Rs3,600.

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