Gold surged to fresh record levels in Asian trading on Tuesday, climbing close to $3,700 per ounce as markets grew increasingly confident that the U.S. Federal Reserve will cut interest rates this week.
Spot Gold traded at $3,679.20 per ounce at 21:43 ET (01:43 GMT) after touching an all-time high of $3,689.32 earlier in the session. Meanwhile, U.S. Gold Futures for December delivery held steady at $3,719.20 per ounce. The rally follows a 1% jump in the previous session, pushing bullion beyond the record highs reached last week.
Investors are widely anticipating a 25-basis-point rate cut when the Fed concludes its September 16–17 meeting, which would mark its first policy easing since December 2024. Expectations of lower borrowing costs, coupled with a weaker U.S. dollar trading near one-week lows, have fueled demand for the precious metal as a safe-haven asset.
Political uncertainty in Washington has also supported gold’s bullish momentum. The U.S. Senate confirmed Stephen Miran, a former economic adviser to Donald Trump, to the Fed Board of Governors, raising concerns that the central bank may face increased pressure from the White House.
Adding to the drama, a U.S. appeals court blocked President Trump’s attempt to remove Fed Governor Lisa Cook, ensuring her likely participation in this week’s policy meeting. Trump is expected to escalate the case to the Supreme Court, further stoking concerns over the Fed’s independence.
With strong safe-haven demand, a softer dollar, and heightened expectations of Fed easing, analysts see gold prices maintaining upward momentum. Investors continue to view bullion as a hedge against political risks and potential economic uncertainty, keeping markets focused on the Fed’s upcoming decision.