Gold Prices Surge to Record High Amid Fed Rate Cut Speculation
Gold futures surged past USD 3,600 per ounce as anticipation of a Federal Reserve rate cut grew. Weak US labor data and geopolitical tensions bolstered gold's appeal, leading to strong inflows into global ETFs and robust demand in India, marking a record high in international and domestic markets.
- Country:
- India
On Monday, gold futures surpassed the USD 3,600 per ounce threshold, setting a new record high, amid expectations of a rate cut by the US Federal Reserve. Gold was trading internationally at USD 3,656 per ounce at 16.06 IST.
The allure of gold as a safe-haven asset intensified, driven by tariff uncertainties and firm rate cut expectations, according to Jateen Trivedi, VP Research Analyst at LKP Securities. Trivedi noted gold's support at USD 3,560 with resistance at USD 3,650. Weak U.S. labor data further fueled rate cut anticipation, prompting a Kedia Advisory note.
The World Gold Council's data indicated a 3.9% monthly gain for gold in August 2025, bringing a year-to-date rise of 31.4%, fueled by a weakening US dollar and geopolitical tensions. Global gold-backed ETFs experienced robust inflows, dominated by Western funds. India's gold demand remained strong, with prices up to Rs 108,122 per 10 grams, reflecting a significant 34-35% annual increase.
(With inputs from agencies.)
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