Global gold prices surged to an all-time high on Monday (September 15), supported by a softer US dollar and falling Treasury yields, as investors focused on the upcoming Federal Reserve meeting, which could shape policy for the rest of the year.
Spot gold rose 1.1% to US$3,680.80 per ounce at 13:44 EST (17:44 GMT), after reaching a record peak of US$3,685.39 earlier in the session. Bullion prices have climbed around 1.6% over the past week. Meanwhile, US gold futures for December delivery closed 0.8% higher at US$3,719.00.
The US dollar index (DXY) fell 0.3% to its lowest level in a week, making gold more attractive to holders of other currencies. Yields on 10-year US Treasury bonds, a benchmark for fixed income, also declined slightly.
Market expectations are that the Fed will cut interest rates by 0.25% on Wednesday, the first reduction since December, with some anticipating a further 0.50% cut later in the year, according to CME’s FedWatch tool.
“Markets have already priced in a 0.25% rate cut,” said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals. He added that one or two additional cuts could follow before the end of 2025.