Summary of this article
Gold prices near record highs on Fed rate-cut expectations.
Softer U.S. inflation and weak jobs data boost bullion demand.
Markets see 90 per cent chance of Fed cut at September meeting.
Analysts eye $3,750–$3,900 levels if momentum continues.
Gold prices stayed close to record highs on September 10, supported by growing expectations that the U.S. Federal Reserve could resume monetary easing as early as next week, according to a recent Reuters report. Softer inflation numbers have boosted the case for rate cuts, drawing investors toward the safety of bullion.
Spot gold rose 0.6 per cent to $3,647.79 per ounce at 9:16 a.m. EDT (1316 GMT), holding just below Tuesday’s peak of $3,673.95. U.S. gold futures for December delivery also edged higher, up 0.2 per cent at $3,687.40. The gains followed fresh Labor Department data showing that producer prices fell unexpectedly in August, largely due to a drop in service costs.
Market watchers believe the shift in U.S. data could give the central bank room to move more decisively. “Any further weakness in economic indicators should continue to support gold, with the possibility of more than two rate cuts before the year ends,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.
1 September 2025
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Fed Policy And Market Expectations
Gold’s traditional role as a hedge against uncertainty and inflation has become even more prominent in a low-interest-rate environment. The metal has already gained more than 38 per cent so far this year, as global investors look for stability amid volatile economic conditions.
According to the CME FedWatch tool, markets are currently assigning a 90 per cent probability to a quarter-point cut at the Fed’s September 16–17 meeting, with smaller chances of a larger reduction. Confidence in policy easing has been reinforced by last week’s weaker nonfarm payrolls report, which signalled that labour market conditions are cooling.
The Labor Department also revised job growth figures downward through March, suggesting the slowdown began even before the impact of President Donald Trump’s tariff policies.
The political climate added another twist this week when a federal judge temporarily blocked Trump’s attempt to remove Federal Reserve Governor Lisa Cook, a move viewed as safeguarding the central bank’s independence. Investors are now watching closely for Thursday’s consumer price index reading, which could prove pivotal in shaping the Fed’s next steps.
Outlook For Precious Metals
Analysts see more room for gains if current momentum holds. Ricardo Evangelista, senior analyst at ActivTrades, identified $3,750 as the next major resistance level, with the potential for gold to approach $3,900 by year-end if it consolidates above that point.
Other precious metals also strengthened alongside gold. Spot silver inched up 0.4 per cent to $41.06 per ounce, platinum gained one per cent to $1,381.37, while palladium jumped 2.7 per cent to $1,179.30.
With expectations of rate cuts, political uncertainty, and economic softness all converging, gold continues to shine as a key refuge for global investors navigating shifting markets.
