Gold extended its rally on Wednesday, September 3, 2025, briefly topping $3,546.99 per ounce before settling around $3,537.29 at 5:21 a.m. Brasília time. U.S. December gold futures rose 0.4% to $3,604.90. The metal has gained over a third this year, ranking among the best-performing assets of 2025, fueled by a weaker dollar and strong demand for safe-haven investments.
Market sentiment has been influenced by political pressure from U.S. President Donald Trump on the Federal Reserve, raising concerns about the central bank’s independence. Trump has pushed for aggressive interest rate cuts, further bolstering gold’s appeal.
Investors now assign a 92% probability to a 25-basis-point cut at the Fed’s September 17 meeting, according to CME FedWatch. Lower rates tend to favor gold, which offers no yield but benefits in environments of dollar weakness and ample global liquidity.
Other precious metals experienced swings. Silver dropped 0.2% to $40.83 per ounce after reaching levels not seen since 2011. Platinum fell 0.8% to $1,391.80, and palladium declined 0.4% to $1,138.78.
The surge in gold was also supported by declines in equities and bond markets, prompting investors to flock to gold-backed ETFs. Tightening physical supply in London, combined with rising lease rates, is adding to the perception of a structurally constrained market.
Traders are closely watching the U.S. employment report due Friday. Signs of a slowing labor market could increase expectations for Fed rate cuts, potentially sustaining gold at historically elevated levels.
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