Gold Hits Record on Fed Cut Bets
Gold surged to an all-time high of $3,673 per ounce on Tuesday, buoyed by growing expectations of Federal Reserve rate cuts through year-end amid signs of a cooling US labor market.
The latest Nonfarm Payrolls revision indicated the economy added 911,000 fewer jobs than previously estimated between March 2024 and March 2025, with final revisions due in February 2026. This follows an 818,000 downward revision a year earlier.
A string of weak labor market reports last week pushed markets to price in three rate cuts this year, including a 25 bps reduction at next week’s Fed meeting. Investors now await inflation data later this week for further policy clues.
Beyond monetary expectations, bullion is also supported by safe-haven demand amid uncertainty over US tariffs and geopolitical risks. Gold has gained 39% year-to-date, driven by US dollar weakness, strong central bank purchases, dovish policy settings, and elevated global tensions.
Source : Trading Economics