Gold Bullish Wave: Fed Weakens, China Buys, New Record Set
Global gold prices hit another record high on Monday (September 9), breaking above US$3,650 per ounce. This surge was triggered by a combination of macroeconomic factors, a weakening dollar, and central bank actions that continue to strengthen demand for the precious metal as a hedge.
The main factor driving gold's rise is expectations of an interest rate cut by the Federal Reserve in September, following a weak US employment report. The market now expects a strong chance that the Fed will cut rates by 25–50 basis points. This has depressed US bond yields and made gold increasingly attractive to global investors.
Furthermore, the People's Bank of China (PBoC) has also continued its gold purchases for the 10th consecutive month through August 2025. The PBoC's gold reserves now stand at over 74 million troy ounces, reflecting its strategy of diversifying foreign exchange reserves away from the dominance of the US dollar. China's gold buying provides structural support for gold prices, bolstering investor confidence that the bullish trend will continue.
With the combination of a weakening dollar, expectations of interest rate cuts, and continued demand from central banks, gold is now increasingly solidifying as a safe-haven asset amid global economic uncertainty.
Source: Newsmaker.id
