By JKNewsMedia
PRICES OF the precious metal briefly climbed to a record high on Tuesday, driven by mounting expectations of a United States (US) interest-rate cut and concerns over the Federal Reserve’s policy direction.
Bullion for immediate delivery advanced as much as 0.9 percent to reach $3,508 an ounce, surpassing the previous peak recorded in April, before easing as the dollar strengthened.
The surge marks the latest stage in a rally that has made the precious metal one of the best-performing major commodities this year.
Also according to market data, gold has gained more than 30 percent in 2025, supported by a combination of weaker economic indicators and mounting investor demand for safe-haven assets.
The momentum has been reinforced by remarks from Federal Reserve Chair Jerome Powell, who signalled last week that the central bank was prepared to consider cutting interest rates in the coming month.
The comments opened the door to a possible shift in policy, encouraging fresh inflows into non-yielding assets such as gold and silver.
Traders are now turning their attention to the US jobs report due on Friday, which analysts expect will provide further evidence of a cooling labour market.
A softer employment reading would strengthen the case for the Federal Reserve to reduce borrowing costs, adding further weight to the rally in precious metals.
Strategists have underlined the significance of the current market environment for gold. UBS Group AG strategist Joni Teves said investors increasing their allocations to gold were driving prices higher.
She added that the outlook remained positive, with expectations of fresh highs in the coming quarters as a result of lower interest rates, weaker economic data, and persistent geopolitical uncertainty.
Silver has also followed the upward trajectory, with both gold and silver prices more than doubling over the past three years.
Analysts have linked this sustained growth to global risks, ranging from trade tensions and economic challenges to heightened geopolitical instability, all of which have enhanced the appeal of precious metals as portfolio diversifiers.
Political developments in the US have further contributed to volatility in financial markets.
President Donald Trump has intensified his criticism of the Federal Reserve this year, raising concerns among investors about the institution’s independence.
Uncertainty deepened after reports that a ruling was pending on whether the president could legally remove Federal Reserve Governor Lisa Cook from office.
A decision in favour of the president would allow the appointment of a more dovish official, potentially altering the direction of monetary policy.
In a separate development, a federal appeals court ruled late Friday that global tariffs imposed under emergency law had been illegally applied.
The decision added to the uncertainty facing American importers and may delay some of the anticipated economic benefits of the administration’s trade measures.
Market watchers said gold’s recent climb above the $3,500 mark would be closely monitored.
Christopher Wong, a currency strategist at Oversea-Chinese Banking Corporation, noted that while gold had crossed that threshold during intra-day trading in April, the next key indicator would be whether it could close above the level on a daily basis.
He added that renewed geopolitical or policy shocks could provide additional support for the metal.
The combination of subdued economic data, political developments in Washington, and continued uncertainty in global trade and security has reinforced gold’s position as a safe-haven asset.
While investors will be watching closely for the outcome of the US jobs report and the Federal Reserve’s next move, the current trajectory suggests continued momentum in precious metals markets.
