Gold surged to a new all-time high on Tuesday, reaching $3,647 an ounce, driven by growing expectations that the Federal Reserve will cut rates multiple times this year. The metal has gained nearly 40% in 2025, fueled by central bank purchases, speculation over rate cuts, and safe-haven demand amid geopolitical tensions and global trade uncertainty.
The rally accelerated after weak U.S. payrolls data on Friday led traders to price in three rate cuts this year, including one as early as next week. Lower borrowing costs typically boost gold since it offers no interest.
Markets are now watching a key revision of U.S. jobs data later Tuesday, as well as inflation figures due Wednesday and Thursday, for further direction. Investor response to Treasury auctions will also be closely monitored.
Analysts expect further gains. Goldman Sachs has projected gold could climb toward $5,000 an ounce if investors shift part of their Treasury holdings into bullion amid concerns over political interference in Fed policy.
ETF inflows into gold surged Monday, marking the strongest demand in nearly three months, though holdings remain below peaks seen during the Covid-19 crisis and the Russia-Ukraine war. As of 9:51 a.m. Singapore time, gold traded at $3,645.61, while silver was steady and platinum and palladium posted modest gains.