Gold soared to a new all-time high on Wednesday, smashing through the $3,500 per ounce barrier as expectations of a Federal Reserve rate cut and mounting geopolitical and trade concerns spurred investors to rush into safe-haven assets, Reuters reported. The metal peaked at $3,546.99 before closing at $3,534.88, while U.S. gold futures for December delivery gained 0.3% to $3,602.80.
Market sentiment strongly favors monetary easing, with Wall Street assigning a 92% chance of a quarter-point cut when the Fed meets on September 17. The U.S. dollar’s sharp 9% decline this year has further propelled the rally. “Everyone’s pretty much taking rate cuts as a given at this point,” said Ross Norman, a senior analyst at Metals Daily, adding that lower rates would likely weaken the dollar further, amplifying gold’s appeal.
Looking ahead, analysts predict gold will fluctuate between $3,600 and $3,900 in the coming months, with the possibility of reaching $4,000 by 2026 if global risks remain elevated. At the same time, central banks in several countries are ramping up gold purchases to diversify and strengthen their reserves against currency volatility.
