Gold prices surged to an all-time high on Tuesday, breaking through the $3,500 mark as investors bet heavily on imminent US Federal Reserve rate cuts. The rally underscores gold’s role as a go-to haven during global financial uncertainty.
Bullion for immediate delivery climbed as much as 0.9% in early Asian trading, touching $3,508.73 an ounce and surpassing its previous peak from April. The metal has already gained more than 30% this year, making it one of 2025’s top-performing commodities.
Analysts say the latest push is being fueled by expectations that the Fed will move to cut rates this month. Chair Jerome Powell recently signaled openness to a reduction, with markets now closely watching Friday’s US jobs report for further confirmation of a cooling labor market.
Beyond monetary policy, gold’s momentum is also being driven by heightened investor caution. Persistent fears over US President Donald Trump’s escalating trade disputes and his sharp criticism of the Fed have amplified concerns over the central bank’s independence, prompting more investors to seek refuge in precious metals.
Dubai gold prices also reset records at Dh388 per gram on the first day of the new season, further underscoring global demand.
With interest rates poised to fall and political risks escalating, analysts expect bullion to maintain its appeal in the months ahead.
