Gold prices reached a record high, rising above $3,500 per ounce for the first time, as expectations increased that the US Federal Reserve (Fed) would cut interest rates this month.
Spot gold reached a historical high of $3,508.50 during the session, before stabilizing at $3,476.
US gold futures rose 0.9% to $3,546.80.Although analysts say the pace of the interest rate reduction process will determine the direction of gold, central bank purchases, safe haven demand and dollar weakness continue to support prices.
Investors are focused on the non-farm payroll data to be released on Friday ahead of the Fed decision on September 17. Markets expect a 25 basis point rate cut with a 90% probability.
Gold, which rose 27% in 2024, has already gained 32% in value this year. According to experts, gold will continue to see strong demand with the “buy the dip” strategy, differentiating itself from assets such as stocks and real estate.
