Spot gold rises above $3,560 per ounce, up 0.42% intraday.

Spot gold rises above $3,560 per ounce, up 0.42% intraday.

Spot gold prices have surged above $3,560 per ounce, marking a significant intraday gain of 0.42%. This rise is attributed to a combination of factors including expectations of lower US interest rates, geopolitical tensions, and economic uncertainty [1].

Gold prices have been on a steady upward trajectory, reaching record highs in recent months. On Friday, September 5, 2025, gold prices hit around $3,550 per ounce, nearing record levels and gaining over 3% week-over-week [1]. This performance has been bolstered by expectations of a Federal Reserve rate cut, which would lower the opportunity cost of holding non-yielding assets such as gold [1].

The latest data from the US labor market has reinforced expectations of an interest rate cut. Job openings and layoffs have increased, while initial jobless claims reached a two-month high. These developments have led traders to price in a September rate cut, potentially extending to three cuts by the end of the year [1].

Geopolitical risks and economic uncertainty have also contributed to the rally in gold prices. President Trump’s actions regarding the Federal Reserve have raised concerns about its independence, further boosting demand for safe-haven assets [1]. Additionally, central banks worldwide have been adding gold to their reserves, highlighting the metal's appeal in uncertain times [2].

The Federal Reserve's balance sheet lists gold certificates held by the Treasury, nominally valued at approximately $11 billion. However, based on the current actual spot price, the real value of this gold is as high as $675 billion. This has sparked discussions about the potential for the US to establish a strategic bitcoin reserve by selling part of its gold reserves [2].

The US dollar has been under selling pressure due to expectations of an interest rate cut at the Federal Reserve’s September meeting. This has contributed to the rise in gold prices as investors seek alternatives to the US dollar [1]. US Treasuries also advanced on Wednesday, pushing their yields lower after data showed job openings fell in July, reinforcing expectations of an interest rate cut [3].

The combination of geopolitical risks, concerns over the US economy, and expectations of a Federal Reserve rate cut have driven gold prices to new heights. As investors continue to seek safe-haven assets, gold is likely to remain a favored option.

References:
[1] https://tradingeconomics.com/commodity/gold
[2] https://www.ainvest.com/news/gold-prices-surge-record-high-investors-advised-10-gold-market-uncertainty-2509/
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3UQ0QU:0-us-bonds-rally-as-jobs-data-backs-fed-rate-cut/