Gold Reaches New Record High Amid Renewed Tariff Uncertainty and Expectations of Fed Rate Cut

Gold surged to a new record high, reaching $3,540 an ounce, amid tariff uncertainty and expectations of a Federal Reserve interest rate cut. The price broke out of a five-month symmetrical triangle, potentially leading to a continuation move higher. The measured move technique projects a bullish price target of $3,930 per ounce. Key support levels to watch are $3,430 and $3,150. The August jobs report will drive short-term sentiment in the precious metal.

Gold prices surged to a new record high of $3,540 per ounce on September 2, 2025, as tariff uncertainty and expectations of a Federal Reserve interest rate cut bolstered demand for the precious metal. The price breakout from a five-month symmetrical triangle could signal a continuation move higher, with a bullish price target of $3,930 per ounce projected using the measured move technique [1].

Key support levels to watch include $3,430 and $3,150. The August jobs report, scheduled for release on Friday, will drive short-term sentiment in the precious metal market. The Federal Reserve's decision to cut interest rates is expected to boost gold prices, as non-yielding gold typically performs well in a low-interest-rate environment [1].

The weaker dollar and mounting expectations of a Federal Reserve interest rate cut in September have boosted gold's appeal. The price of gold has gained more than 30% so far this year, with the precious metal breaking the $3,000 per ounce level for the first time in March 2025 [1].

Traders are currently pricing in a 90% chance of a quarter-of-a-percentage-point Fed rate cut on September 17, according to the CME FedWatch tool. The U.S. Treasury Secretary, Scott Bessent, is set to begin interviewing candidates for the position of Federal Reserve Chair on Friday, further adding to market uncertainty [2].

The price of silver was little changed at $40.64 per ounce, after hitting its highest level since September 2011 in the previous session. The European Union has postponed imposing fines on Google's advertising technology business while awaiting a reduction in U.S. automobile tariffs. The U.S. manufacturing PMI for August indicated factory activity contracted for the sixth consecutive month, but there were some optimistic signs for the future, with the new orders index expanding for the first time since the beginning of the year [2].

Gold stocks rose across the board, with Vista Gold increasing by over 12%, Aura Minerals by over 4%, Kinross Gold and Golden Star Resources by nearly 3%, and Newmont by nearly 2%. The U.S. stock market closed lower on Tuesday, with all three major indices declining due to market uncertainty and the potential appeal of the tariff ruling to the Supreme Court [2].

References:
[1] https://www.cnn.com/2025/09/02/business/gold-price-record-dollar-interest-rates-intl
[2] https://news.futunn.com/en/post/61571777/futu-daily-gold-hits-a-new-historical-high-trump-will