The gold price has surged to an all-time high above $3,500 an ounce, extending its winning streak to a sixth consecutive session as investors bet on imminent US interest rate cuts and fretted over political threats to central bank independence.
Spot gold climbed to $3,508.73 in early Tuesday trading before easing back to $3,496.40, still up 0.57%. US gold futures for December delivery advanced 1.4% to $3,564.40 an ounce.
According to the CME FedWatch tool, traders now see an 89.7% chance of a 25-basis-point Federal Reserve rate cut at its September 17 meeting. Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making the metal more attractive to investors.
The rally builds on months of momentum driven by safe-haven demand, as market volatility, inflation pressures, and geopolitical tensions have boosted appetite for bullion.
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