Gold breaks records: investors expect Fed to cut rates, and the market prepares for a new wave of rally
9 September 2025 14:56
On Tuesday, gold prices again set an all-time high, rising amid optimism about future decisions by the US Federal Reserve. The price of the precious metal reached more than $3,659 an ounce, surpassing the previous day’s record. Bloomberg writes about it, "Komersant Ukrainian" reports.
Why gold is rising
- Expectations of cheaper loans: Gold benefits when interest rates fall, as it does not pay interest and becomes more attractive to investors.
- Weak data from the US labor market: On Friday, unexpectedly negative employment figures were released, fueling forecasts of monetary policy easing.
- Search for a “safe haven”: Geopolitical risks and President Donald Trump’s tariff policy are driving demand for safe assets.
Market dynamics
- Over the past two trading days, gold has gained 2.5%.
- Since the beginning of 2025, the price has risen by almost 40%.
- Central banks around the world are actively buying up the precious metal to diversify their reserves.
What will happen next
Further dynamics will depend on key macroeconomic indicators:
- revised US employment data (expected on Tuesday);
- producer and consumer price indices (Wednesday-Thursday);
- the situation on the short- and long-term government bond market.
Experts warn that volatility in the gold market has already increased, raising the cost of options. If the quotes exceed traders’ expectations, they will be forced to buy back the asset, which could push the price up even further.
“Higher option prices do not guarantee a continuation of the rally. At the same time, if the growth exceeds the expectations of options traders, they will have to buy back the asset, which may further push the quotes up,”
– said Pepperstone researcher Ahmad Asiri.
As a reminder, on September 8, gold broke through the psychological mark of $3,600 per ounce for the first time.
In early September, analysts predicted that the price could rise to $5,000 if Donald Trump’s attacks on the Fed affect its independence.
This is the third year in a row that gold has shown steady growth amid monetary and geopolitical factors.
