Gold hits record high, surges above $3,600 as weak US jobs data fuels Fed rate cut bets

Gold surged past $3,600 an ounce for the first time on Monday, extending its record-breaking rally after weak US jobs data reinforced expectations of a Federal Reserve rate cut next week.

Spot gold rose 0.9 per cent to $3,617.76 per ounce by 1033 GMT, having earlier touched a fresh all-time high of $3,622.07. US gold futures for December delivery held steady at $3,657.90.

The metal has climbed nearly 38 per cent so far this year, on top of a 27 per cent gain in 2024, supported by a softer dollar, robust central bank buying, looser monetary policy, and heightened geopolitical and economic uncertainty.

Friday’s data showed US job growth slowed sharply in August, pushing unemployment to a near four-year high of 4.3 per cent and bolstering bets on a Fed rate cut. Markets now see a 90 per cent chance of a 25-basis-point reduction, according to the CME FedWatch tool.

“Rate cut expectations are fuelling demand for gold. On top of that, central banks continue to buy heavily in a very uncertain geopolitical environment,” said Carlo Alberto De Casa, external analyst at Swissquote.

UBS analyst Giovanni Staunovo forecast gold could reach $3,700 per ounce by mid-2026.

US 10-year Treasury yields hovered near five-month lows, while traders looked ahead to US inflation data due Wednesday and Thursday for further clues on the Fed’s decision.

Meanwhile, China’s central bank added to its gold reserves in August, marking a 10th straight month of purchases, official data showed.

Among other precious metals, silver rose 0.8 per cent to $41.31 per ounce, platinum climbed 1.5 per cent to $1,393.45, and palladium gained 1.8 per cent to $1,130.11.