by Nigerian News24 Correspondents
Gold prices have soared nearly 39% so far this year, building on a 27% rally in 2024, as a weaker U.S. dollar, strong central bank buying, dovish monetary policy, and persistent global uncertainty fuel demand for the safe-haven asset.
On Tuesday, spot gold climbed 0.5% to $3,653.25 per ounce, holding firm above the $3,600 level it crossed in the previous session. Earlier in the day, it touched a new all-time high of $3,659.10. U.S. gold futures for December delivery also advanced 0.4% to $3,692.40.
Market optimism over an imminent U.S. Federal Reserve rate cut has been a key driver. Traders are pricing in an 88% chance of a 25-basis-point cut next week and a 12% probability of a deeper 50-bp move, according to CME Group’s FedWatch tool. Friday’s jobs report, which showed sharply weaker U.S. employment growth in August, reinforced these expectations.
“Bulls have been energized by the market’s conviction of a rate cut, which has sent gold to fresh record highs,” said Han Tan, chief market analyst at Nemo.money. “The softer dollar cleared the path for $3,600, while inflows into bullion-backed assets and central bank purchases continue to provide strong support.”
Lower interest rates typically weigh on the dollar and bond yields, making non-yielding gold more attractive. Investors now await U.S. producer price data on Wednesday and consumer price data on Thursday for further signals on the Fed’s next move.
Tan noted that spot gold could test $3,700 this week if U.S. jobs data are revised sharply lower or inflation figures surprise on the downside. Looking ahead, he added: “$4,000 gold in 2025 may require faster-than-expected Fed cuts alongside a decline in confidence in U.S. fiscal policies or the Fed’s independence.”
Other Precious Metals
- Spot silver dipped 0.3% to $41.21 per ounce.
- Platinum rose 0.9% to $1,396.30.
- Palladium gained 0.4% to $1,138.16.
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