Gold has surged to new record heights, surpassing US$ 3,500 per troy ounce amid a wave of anxiety among investors regarding global economic instability. The trend is driven by inflationary fears, a weaker US dollar, and growing expectations of a Federal Reserve (Fed) interest‑rate cut this month. Market sentiment was further shaken by President Trump’s “liberation day” tariffs and pressure on the American central bank independence.
The rally reflects investors intolerance to higher risk in this moment and a chasing for safety. In early Asian trading this September 2 gold hitted US$ 3,508.50, while US gold futures for December climbed to US$ 3,564.40. These gains were largely attributed to expectations of a 25 bps interest rate cut in the US and a broader confidence crisis in dollar assets, stirred by geopolitical tensions mainly.
But the scenario isn’t limited to the US. The precious metal also hit a global intraday high of US$ 3,571.50, settling around US$ 3,554.10, as global markets sell‑off and fiat currencies falter. These movements underscore a shift away from traditional reserve assets amid doubts over US fiscal and monetary stability.
Structural demand continues to go stronger. Since early 2023, gold prices have nearly doubled, as central banks—including India, China, Turkey, and Poland—have boosted their gold reserves. It now represents 20% of global official reserves, overtaking the euro. Meanwhile, equity and bond volatility have funneled further investment into gold-backed ETFs, reinforcing the trend worldwide.
Looking ahead, analysts from Goldman Sachs predict gold climbing to US$ 4,000 per ounce by mid‑2026, influenced by ongoing de‑dollarization strategies and safe‑haven inflows. Yet, technical indicators in markets like India suggest caution, with traders noting that gold may be entering an overheated zone, prompting discussions of potential corrections.
