Spot Gold Tops $3,500/Oz, Sets Record High With Over 33% Year-To-Date Gain

Spot gold tops $3,500/oz, sets record high with over 33% year-to-date gain as the prospect of Federal Reserve rate cuts and growing concerns over the central bank’s future gave fresh legs to the multi-year rally in precious metals.

The latest run has been underpinned by expectations that the US central bank will reduce interest rates this month, after Fed Chair Jerome Powell cautiously opened the door to a reduction. A key US jobs report this Friday is likely to add to signs of an increasingly subdued labor market — supporting the case for cuts. That’s boosted the allure of precious metals, which do not pay holders interest.

Both gold and silver have more than doubled over the past three years, with mounting risks in the spheres of geopolitics, the economy, and global trade driving increased demand for the time-honored haven assets. An escalation in US President Donald Trump’s assaults against the Fed this year has become the latest cause for investor alarm, with concerns over the central bank’s independence threatening to erode confidence in the US.

Markets are waiting for a court ruling over whether Trump has legitimate grounds to remove Fed Governor Lisa Cook from the central bank. Separately, a federal appeals court ruled late Friday that the president’s global tariffs were illegally imposed under an emergency law, increasing uncertainty for American importers while delaying the economic dividends the administration has promised.

Gold spiked to its record in April after Trump unveiled an initial plan to introduce sweeping tariffs on most US trading partners. Prices have since eased and remained largely range bound as haven demand cooled, due to the president walking back some of his most aggressive trade proposals.