Gold prices surged to an all-time high on Tuesday, breaking through the $3,500-per-ounce barrier as investors sought safe-haven assets amid global economic uncertainty and expectations of interest rate cuts in the United States.
The precious metal spiked to nearly $3,550 before stabilizing around $3,480 per ounce, marking one of the most dramatic rallies in recent history. Analysts say the jump reflects a “perfect storm” of economic pressures, from a weakening U.S. dollar to persistent inflation concerns and geopolitical instability.
Fed Policy in Focus
Much of the rally is tied to growing speculation that the Federal Reserve will cut interest rates as early as this month. A softer monetary stance reduces the appeal of the dollar while making gold, which offers no yield, more attractive to investors worldwide.
“The market is pricing in a near certainty of a rate cut, and gold is responding accordingly,” said one commodities strategist.
Global Uncertainty Driving Demand
Beyond monetary policy, political tensions, inflation risks, and investor unease about global stability are fueling a surge in demand for tangible assets like gold. A weaker dollar has amplified the effect, making gold more affordable for buyers in other currencies.
Silver Joins the Rally
The momentum is not limited to gold. Silver has also broken new ground, climbing above $40 an ounce for the first time in more than a decade, underscoring the broader strength across precious metals.
What’s Next?
All eyes are now on upcoming U.S. labor market data, which will play a decisive role in shaping the Fed’s next move. If a rate cut is confirmed, many analysts believe gold could extend its rally further, potentially setting new records before the end of the year.
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