Gold surged to another record high on Wednesday, breaking through $3,500 an ounce as traders increasingly bet on the Fed cutting rates and worried about growing political and trade tensions, according to Reuters.
The precious metal reached $3,546.99 before settling at $3,534.88. Furthermore, U.S. gold futures for December delivery climbed 0.3% to $3,602.80.
Wall Street is now nearly certain the Fed will slash rates next month, with markets putting the odds of a quarter-point cut at 92% when officials meet Sept. 17. The dollar’s steep decline this year — now down more than 9% — has only fueled gold’s rise.
«Everyone’s pretty much taking rate cuts as a given at this point,» noted veteran gold analyst Ross Norman of Metals Daily. «The real question is what happens next. Lower rates would boost the U.S. economy and likely push the dollar even lower — both big positives for gold.»
Looking ahead, analysts see gold trading between $3,600 and $3,900 in the coming months, potentially reaching $4,000 by 2026 if economic and global risks stay elevated.
Meanwhile, several countries are increasing gold purchases to better balance their gold and currency reserves.
