Gold Price Smashes $3,500 Barrier as US Rate Cut Hopes and Political Drama Roil Markets
Gold has broken through another record, climbing above $3,500 an ounce, as global markets buckle under a mix of rate cut speculation and political unrest in the United States.
The yellow metal surged to $3,508.73 in early Tuesday trading before easing slightly to $3,496.40, still ahead by 0.57%. US gold futures for December also pushed higher, rising 1.4% to $3,564.40 an ounce.
This marks the sixth straight session of gains, cementing gold’s status as t
#XAUUSD #FX #Gold prices surged again, reaching a new all-time high near $3,508, shocking the market once again.
If gold prices break below this level, further upward potential may emerge.
Trading strategy: Go long around 3,475-3,485. pic.twitter.com/yx247hxDGn
— Annette (@XAUUSD_Annette) September 2, 2025
he safe-haven of choice.
Investors are convinced that the Federal Reserve is on the brink of cutting rates. According to the CME FedWatch tool, markets are pricing in an 89.7% chance of a quarter-point cut when policymakers meet on 17 September.
Lower interest rates typically weigh on the dollar and make non-yielding assets like gold more attractive. It’s a textbook move, but this time, politics is adding fuel to the fire.
The latest rally comes as worries mount over central bank independence. Christine Lagarde, president of the European Central Bank, issued a sharp warning.
She said US President Donald Trump risked causing “very serious” economic harm if he attempted to sack Federal Reserve chair Jerome Powell or governor Lisa Cook.
Trump has long battled with the Fed, criticising its rate decisions and openly questioning its fight against inflation. Any move to oust top officials, analysts say, would spook markets and accelerate the rush into gold.
The mood in financial markets is restless. Inflation is still sticky. Growth looks fragile. Political headlines keep unsettling investors. All of that has created a perfect storm for bullion.
Strategists now suggest gold could soon test $3,600 an ounce if the Fed confirms a rate cut this month. The momentum appears unstoppable for now.
Though the turmoil stems from Washington, the impact is global. London gold dealers are already reporting surging demand, as British investors look to hedge against both a wobbling global economy and lingering uncertainty at home.
For households, the rise in gold price underlines one thing: confidence in traditional monetary systems is eroding. As the world’s reserve currency comes under political pressure, bullion’s role as a store of value is shining brighter than ever.
