Gold: New Record Approaching $3,650/oz, Driven by Fed Rate Cut Bets

Gold futures have hit new highs, reaching approximately $3,650 per ounce. This surge follows a weaker US jobs report that has strengthened bets on a rate cut of at least 25 basis points by the Federal Reserve, with the possibility of multiple cuts by the end of 2025. Investors are now awaiting the upcoming Producer Price Index (PPI) and Consumer Price Index (CPI) data from the US, which are expected later this week. These reports could provide further insights into the Fed's future actions regarding interest rates. In addition to rate expectations, the demand for gold as a safe-haven asset is bolstered by uncertainties surrounding US tariffs and geopolitical risks. Since the beginning of the year, gold has surged by 39%, driven by the weakness of the US dollar, significant purchases by central banks, an accommodative monetary environment, and heightened global uncertainty.