Gold Hits Record High Above $3,500 as Rate-Cut Bets Fuel Demand

GLOBAL MARKETS, September 2 — Gold soared to a record high of $3,508.73 an ounce on Tuesday, surpassing its April peak, driven by widespread expectations of Federal Reserve rate cuts and growing uncertainty over the central bank’s future. According to details received by The Chenab Times, the latest data from Bloomberg shows the metal rose as much as 0.9% in early Asian trading before easing, marking a 30% gain this year and highlighting its status as a top commodity in a three-year bull run where gold and silver have more than doubled.

The rally intensified after Fed Chair Jerome Powell hinted at a rate cut this month, with a key U.S. jobs report due Friday expected to reflect a softening labor market, boosting demand for non-yielding precious metals. UBS strategist Joni Teves noted, per Bloomberg, “A lower interest rate environment, softer economic data, and elevated geopolitical risks enhance gold’s role as a portfolio diversifier.” Silver also surged, up over 40% this year to exceed $40 an ounce for the first time since 2011, fueled by industrial demand and a fifth year of supply deficits, according to the Silver Institute.

Investor concerns have mounted due to President Trump’s attacks on the Fed, including a court challenge to remove Governor Lisa Cook and a ruling invalidating his global tariffs under emergency law. Gold-backed ETFs saw holdings rise for the seventh straight month in August, straining London’s metal stockpile and lifting lease rates to 2%. Bloomberg data indicates spot gold climbed 0.6% to $3,497.25 an ounce by 10:43 a.m. in Singapore, with silver steady at $40.71 an ounce.

The Chenab Times learned that the market is watching if gold can hold a daily close above $3,500, with potential geopolitical risks and policy shifts poised to drive further gains.

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