Spot gold just hit $3,620, set a new record high

Spot gold just hit $3,620, set a new record high

Gold (GC=F) futures opened at a new record high of $3,620.00 per ounce on Tuesday, September 2, 2025, surpassing the previous record set in April. This significant increase of 1.3% from Friday’s close of $3,473.70 underscores the ongoing bullish sentiment surrounding the precious metal.

The price of gold was even higher during early trading hours, reaching $3,630.00 per ounce, before settling at $3,620.00. This record opening follows the release of a July inflation report that was up 2.6% from the prior year, a U.S. appeals court decision against President Trump’s tariffs, and the upcoming Fed meeting. The inflation report likely increases investor confidence that the Fed will lower interest rates later this month. The ruling against the president’s tariffs adds economic uncertainty, which clouds business visibility for U.S. companies that have international supply chains. Gold benefits from lower interest rates and economic uncertainty since it produces no income and acts as a store of value [1].

The current price of gold is up 4.1% from the opening price of $3,378.90 one week ago on August 26. In the past month, the gold futures price has increased 7.1% compared to the opening price of $3,286.20 on August 1, 2025. In the past year, gold is up 39.6% from the opening price of $2,519.50 on August 30, 2024 [1].

Zijin Mining, a major player in the gold sector, has announced a strategic move by spinning off its overseas gold operations into Zijin Gold International via a $3 billion Hong Kong IPO. This move is aimed at leveraging premium valuation multiples (20–25x earnings) for growth. Funds from the IPO will be used to expand African and South American operations, develop the Raygorodok mine in Kazakhstan, and boost annual production by over 500,000 ounces. Analysts project a $12–$15 billion post-IPO valuation (40% premium), driven by 15 million ounces of global reserves and gold’s structural re-rating amid geopolitical tensions and inflation [2].

The gold sector is undergoing a structural re-rating, driven by geopolitical tensions, inflationary pressures, and surging central bank demand. Against this backdrop, Zijin Mining’s strategic capital allocation and valuation engineering position it as a consolidating force in a fragmented sector [2].

References:
[1] https://finance.yahoo.com/personal-finance/investing/article/gold-price-today-tuesday-september-2-2025-gold-opens-at-record-high-above-3500-114058228.html
[2] https://www.ainvest.com/news/zijin-gold-3-billion-hong-kong-ipo-strategic-move-global-gold-market-dominance-2509/