Gold surged to another record high on Tuesday, holding well above the $3,600 mark reached in the previous session, as expectations of a U.S. interest rate cut weakened the dollar and pushed bond yields lower, boosting demand for the precious metal.
Spot gold rose 0.5% to $3,653.25 per ounce at 1120 GMT, after hitting an all-time high of $3,659.10 earlier in the day. U.S. gold futures for December delivery were also up 0.4% at $3,692.40.
The metal has gained nearly 39% so far this year, following a 27% rise in 2024, supported by a softer dollar, strong central bank buying, dovish monetary policy, and global economic uncertainty. The dollar index slipped to a near seven-week low, while U.S. 10-year Treasury yields hovered close to five-month lows, both adding to gold’s appeal.
Rate cut expectations have energized bulls, sending gold to fresh record highs,” said Han Tan, chief market analyst at Nemo.money. Traders now see an 88% chance of a 25-basis-point Fed cut next week, with some betting on a larger 50-point move, after data showed a sharp slowdown in U.S. job growth.
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