New record: gold above $ 3,500, interest reduction on the way?

The gold price rose today in the early morning to a new record of more than $ 3,500 per ounce. The precious metal benefited from a weaker US dollar and increasing expectations that the American Federal Reserve will lower interest rates in September. Reuters news agency reports this.

Interest nurses and political pressure

Gold recorded a peak of just over $ 3,508.50 per ounce in early trade, before it dropped back to a current level of $ 3,477. This means that the value of gold is already 32 percent in the Plus this year. American goldfutures for December rose by 1.2 percent to more than $ 3,550.

According to Capital.com market analyst Kyle Rodda, both the prospects for interest rates and a decreasing trust in the US dollar ensure support for precious metals. He pointed out the criticism of President Donald Trump to the independence of the Fed. Trump accuses, among other things, chairman Jerome Powell of keeping the interest too high.

Finance Minister Scott Bessent emphasized on Monday that the Fed should remain independent, but admitted that the central bank “made many mistakes”. He also defended Trumps decision to dismiss Fed Gourverneur Lisa Cook for alleged mortgage fraud.

Traders now take into account a 90 percent chance on an interest rate reduction of 25 basic points during the next FED meeting on 17 September. A lower interest rate makes gold more attractive, since gold itself does not yield interest.

Strong demand for safe ports

The rise in gold fits in a wider trend. Since the beginning of 2024, the price has already risen by almost 60 percent, partly due to large -scale gold shopping through central banks and rising geopolitical tensions. Analysts point to the decreasing role of the dollar as a world reservation, the uncertainty about trade policy and the needs of investors at safe ports.

In March of this year, Goud broke through the $ 3,000 per ounce limit for the first time. Since then it actually keeps going fast. According to Tim Waterer, main market analyst at KCM Trade, the Goudrally can keep up “to $ 3,600 or further if the Fed is implementing multiple interest rates and a peace agreement between Russia and Ukraine remains”.

Investors will look forward to the American employment figures on Friday in the coming days. According to analysts, these figures will give an important indication of the extent of the expected interest rate reduction.

Other precious metals are currently also benefiting: silver trades almost unchanged at 40.40 dollars per ounce and platinum rose 1 percent to 1,412 dollars.