Gold holds above $3,600 as fed rate cut expected

September 09, 2025 (MLN):  Gold prices surged further on Tuesday, maintaining momentum well above the $3,600 level breached in the previous session, as growing expectations of a U.S. interest rate cut weighed on the dollar and Treasury yields, strengthening demand for safe-haven assets.

Spot gold was up 1.94% at $3,655.78 an ounce as of [2:19 pm] PST, according to data reported by Mettis Global.

U.S. gold futures rose 0.3% higher to $3,688.10.

Analysts attribute the sustained upswing to central bank purchases, persistent geopolitical uncertainty, and increasingly dovish monetary policy.

Market participants now see an 88% likelihood of a 25-basis-point rate reduction at next week’s Federal Reserve meeting, with a 12% probability of a larger half-point move, according to CME Group’s FedWatch tool.

Expectations intensified after Friday’s data revealed a sharp slowdown in U.S. job growth for August.

Lower borrowing costs typically put pressure on the dollar and bond yields, enhancing bullion’s allure as a non-yielding asset.

Traders are to closely monitor U.S. producer price data on Wednesday and consumer inflation figures on Thursday for clearer signals on the Fed’s trajectory.

In the broader precious metals complex, spot silver inched up 0.1% to $41.35 per ounce. Platinum advanced 0.8% to $1,394.12, while palladium rose 1.4% to $1,149.61.

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