Gold Hits Fresh Record Above $3,647 as Fed Rate-Cut Bets Surge

Gold extended its record-breaking rally on Tuesday, climbing as much as 0.3% to over $3,647 an ounce after traders ramped up bets on multiple Federal Reserve rate cuts this year. The move builds on a 2.5% jump over the previous two sessions, triggered by weaker-than-expected U.S. payrolls data that fueled expectations for three cuts in 2025, including one as soon as next week.

Bullion, which benefits from lower borrowing costs since it pays no interest, has already surged nearly 40% this year. Support has come from central-bank buying, haven demand amid geopolitical tensions, and concerns over President Donald Trump’s tariff policies and criticism of Fed independence.

Investors are now watching closely for U.S. jobs data revisions on Tuesday and key inflation prints later this week, along with Treasury auctions, to gauge whether gold’s rally can sustain momentum.

Analysts remain bullish. Goldman Sachs sees scope for gold to approach $5,000 if political risks drive investors out of Treasuries and into bullion. Exchange-traded funds have also been piling in, with Monday marking the biggest inflows in three months.

As of 9:51 a.m. in Singapore, spot gold traded at $3,645.61 an ounce. The Bloomberg Dollar Spot Index was steady, silver was flat, while platinum and palladium edged higher.