Gold Prices Hold Near Record Highs as Fed Rate Cut Bets Rise

Gold prices edged higher in Asian trading on Wednesday, holding just below record peaks, as firm expectations of a U.S. Federal Reserve rate cut boosted demand for safe-haven assets. Spot gold rose 0.5% to $3,646.14 per ounce at 02:17 ET (06:17 GMT), after reaching an all-time high of $3,674.09 the previous day. Gold futures for December hovered at $3,684.60, steady after hitting levels above $3,700 in the prior session.

So far in 2025, gold has surged nearly 40%, fueled by persistent safe-haven demand amid global trade tensions under President Donald Trump’s policies, coupled with strong central bank purchases. Market sentiment strengthened after revised U.S. labor data revealed 911,000 fewer jobs created over the past year than previously estimated, underscoring a cooling job market. The weaker data cemented expectations for a 25-basis-point Fed rate cut next week, with a small chance of a 50-point move. Lower interest rates typically boost non-yielding assets like gold by reducing the attractiveness of bonds.

Analysts expect monetary policy to remain the key driver of gold’s direction. ING noted that easing expectations will continue to support bullion, while ANZ upgraded its year-end forecast to $3,800 per ounce from $3,600. The bank now projects prices could peak near $4,000 by mid-2026, citing macroeconomic challenges, trade tariffs, and sanctions as catalysts for investor demand.

Other precious metals also advanced, with platinum up 0.8% at $1,387.60, while silver climbed nearly 1% to $41.73—its strongest level since 2011. Copper prices also gained modestly, with London futures at $9,960.50 a ton. Meanwhile, data from China highlighted deflationary pressures, as consumer prices fell more than expected in August, and producer prices extended their decline for the 35th consecutive month.