Gold prices climbed to an all-time high of $3,508.50 per ounce on Monday, September 2, 2025, driven by mounting expectations of a Federal Reserve interest rate cut later this month, according to data cited in a recent CNBC report. The surge comes as the U.S. dollar lingers near a five-week low, making gold more attractive to investors holding other currencies. Markets are now pricing in an 89% chance of a 25 basis point rate cut at the Fed’s September meeting, with some speculating that weaker-than-expected job data could prompt a bolder 50 basis point reduction.
Investors are closely watching two key economic indicators this week. The nonfarm payrolls report, due Friday, will shed light on the U.S. labor market’s health, following signs of unexpected weakness in recent job data. “A softer jobs report could tilt the Fed toward a more aggressive cut,” a market analyst noted in the CNBC report. Additionally, the August inflation report, set for release on September 11, will play a critical role in shaping the Fed’s monetary policy decisions. Lower interest rates typically boost gold’s appeal, as the non-yielding asset competes less with bonds and other fixed-income investments.
Key factors driving gold’s rally include:
- Rate Cut Expectations: Markets see an 89% chance of a 25 basis point cut.
- Dollar Weakness: The dollar’s five-week low makes gold cheaper for global buyers.
- Upcoming Data: Nonfarm payrolls and inflation reports will guide Fed policy.
The gold market’s bullish momentum reflects broader economic uncertainty, with investors turning to the precious metal as a safe-haven asset. As the Fed’s next moves hang in the balance, Friday’s jobs data and next week’s inflation figures will be pivotal in determining whether gold’s record-breaking run continues.
