Gold Holds Above $US3600 as Rate Cut Hopes Build

Highlights:

• Gold stays above $US3600/oz at the time of writing, after touching a record $US3673.95 on Tuesday.
• Markets eye U.S. inflation data with a 25-basis-point Fed rate cut fully priced in this month.
• Gold up 38% in 2025, boosted by a weaker dollar, central bank buying, and global uncertainty.

Prices Remain Near Record Levels

Gold prices extended gains on Wednesday, staying well above the $US3600-per-ounce mark as investors bet on a U.S. interest rate cut later this month. At the time of writing, spot gold was up 0.3 per cent at $US3635.33 per ounce, after reaching a record high of $US3673.95 on Tuesday. U.S. gold futures for December delivery eased slightly, down 0.2 per cent to $US3673.70.

Inflation Data in Focus

Investor attention is now turning to key U.S. inflation readings, which could provide fresh signals on the Federal Reserve’s next move. The U.S. producer price index (PPI) is due later today, while consumer price inflation data is scheduled for release on Thursday.

Strong Performance in 2025

Gold has surged 38 per cent so far in 2025, adding to a 27 per cent rally in 2024. Analysts point to multiple drivers behind the metal’s strength: a softer U.S. dollar, consistent central bank purchases, dovish monetary policy, and heightened global economic uncertainty. With gold offering no yield, its appeal traditionally increases when interest rates decline.

Broader Precious Metals Market

The rally is not limited to gold. At the time of writing, spot silver advanced 0.3 per cent to $US41 per ounce. Platinum gained 0.9 per cent, reaching $US1380.74, while palladium held steady at $US1148.57.

As traders weigh upcoming inflation data and the Fed’s next rate decision, gold is expected to remain a key safe-haven asset for investors navigating turbulent financial markets.

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