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Rate-cut hopes push gold past $3,600 for first time

Published: 09 Sep. 2025, 17:29

Gold bars on display at a jewelry shop in Jongno District, central Seoul, are seen on Sept. 7. [YONHAP]

International gold prices have once again hit record highs, surpassing $3,600 an ounce just four days after breaking the $3,500 mark for the first time.

The spot price of gold rose to as high as $3,646.29 an ounce, setting an all-time high, according to the London Bullion Market Association on Monday. Gold futures for December delivery on the Chicago Mercantile Exchange closed at $3,677.40, up 0.7 percent from the previous day.

Analysts say gold could climb further in the short term, with projections of $3,700 to $3,730.

Peter Grant, vice president of Zaner Metals, said that "strong upward momentum" is continuing in the gold market.

The surge has been fueled by expectations of a rate cut by the U.S. Federal Reserve. Weak job data have reinforced market confidence that the Federal Open Market Committee, which meets Sept. 16 to 17, will cut the benchmark rate by 0.25 percentage points, with some even speculating about a “big cut” of 0.5 percentage points. Lower interest rates reduce bond yields and increase the appeal of gold.

Persistent inflation in the United States, rising government debt and a weaker dollar — down 10 percent against major currencies this year — are strengthening gold’s status as a safe haven asset.

Chris Turner, head of ING Global Research, said that real interest rates are showing signs of turning negative again, making ground for gold to stand out as a hedge against inflation more than other assets.

Financial market instability has further stoked demand. The Financial Times reported that U.S. President Donald Trump’s attempt to remove Federal Reserve Gov. Lisa Cook heightened concerns about the Fed’s independence and fueled inflation fears.

Silver prices also surged, reaching $41.29 an ounce, the highest level since September 2011. With central banks around the world continuing large-scale gold purchases, experts say the preference of foreign investors for gold over U.S. Treasurys is likely to sustain the upward trend.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JEONG JAE-HONG [[email protected]]