Gold’s record-setting rally has gotten a second wind following a weak U.S. jobs report.
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The price of gold is up more than 1% and trading at a fresh all-time high of $3,651.90 per ounce after weak jobs data further raised expectations for the U.S. Federal Reserve to cut interest rates at its upcoming Sept. 17 meeting.
Gold’s previous record price was $3,599.89 an ounce. The precious metal has now broken above $3,600 an ounce for the very first time following its strongest weekly gain in nearly four months. The yellow metal is up 37% on the year following a 27% gain in 2024. Gold continues to run circles around U.S. equities, with the benchmark S&P 500 index up 10% in 2025.
Other Catalysts
Expectations for lower interest rates are giving gold’s price an immediate lift. However, the metal is also rising due to several other catalysts, including U.S. dollar weakness, central bank buying, and growing geopolitical and economic uncertainty. Investors tend to view gold as a safe haven asset.
Analysts on Wall Street have also flagged risks to the independence of the U.S. central bank as a key factor in pushing gold’s price higher. However, the biggest near-term catalyst appears to be the prospect of lower interest rates. Futures traders are now betting there’s a 100% chance of a 25-basis-point interest rate cut at the Fed’s September meeting.
Gold, which does not pay interest, tends to shine when interest rates are low and uncertainty is high, making it a go-to asset for investors seeking a margin of safety.
Is the SPDR Gold Shares ETF a Buy?
The SPDR Gold Shares (GLD) exchange-traded fund (ETF) tracks the spot price movements of bullion. Its price has risen 7.52% in the last three months as geopolitical uncertainty and market risks have grown.
