Gold has surged to a fresh record high above $3,600 an ounce as investors increase bets that the US Federal Reserve will cut interest rates this month, fuelling demand for the traditional safe-haven asset.
Spot gold rose 0.8 per cent to trade at $3,614.24 an ounce, lifted by a weaker dollar and mounting concerns over the global economic outlook, US trade tensions and questions about the dollar’s long-term dominance.
The latest rally extends a sharp run-up in prices that has seen gold climb more than 35 per cent since the start of the year, as investors and central banks alike have added to their holdings to hedge against inflation and policy uncertainty.
The surge follows warnings from analysts at Goldman Sachs, who last week said gold could climb to nearly $5,000 an ounce if President Trump’s sustained attacks on the Federal Reserve undermine its independence. Investors fear that political pressure on the Fed could weaken its resolve in fighting inflation, prompting a further flight from dollar-denominated assets into precious metals.
The momentum behind gold underscores the scale of investor unease over the direction of US monetary policy and its impact on the global economy. With inflation still elevated and the Fed caught between the need to maintain credibility and political scrutiny from the White House, analysts suggest that bullion could remain a major beneficiary of uncertainty in the months ahead.
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Gold surges past $3,600 an ounce as investors bet on US rate cuts
