Gold at all-time high above $3,500 on US rate cut prospects

Gold prices scaled the $3,500 per ounce level to hit a record high on Tuesday, as mounting expectations for a US Federal Reserve interest rate cut this month lifted demand for the precious metal.

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Spot gold was steady at $3,476.48 per ounce as of 0947 GMT, after hitting a record high of $3,508.50 earlier in the session. Bullion has gained 32 per cent so far this year.

US gold futures for December delivery gained 0.9 per cent to $3,546.80.

"Gold's rally is set to be heavily influenced by how much the Fed's rate-cutting path adheres to market projections," said Han Tan, chief market analyst at Nemo.money.

"It still enjoys enough fundamental tailwinds, from central bank purchases to safe-haven demand-especially if trade tariffs take a meaningful toll on global economic growth - going into next year," he added.

Traders are currently pricing in a 90 per cent chance of a 25-basis-point Fed rate cut on September 17, according to the CME FedWatch tool. Nonyielding gold typically performs well in a low-interest-rate environment.

Long regarded as a dependable hedge against geopolitical and economic turmoil, gold has rallied to multiple record highs in 2025, drawing support from ongoing central bank buying amid a move away from the US dollar, strong safe-haven demand in light of geopolitical and trade uncertainty, plus broad dollar weakness, analysts say.