Gold surges to an All Time High

 Gold touched a new record high, driven by expectations of U.S. interest-rate cuts and renewed safe-haven demand after recent turmoil in equity and bond markets. The metal, along with other precious and industrial peers, extended strong gains this week following the Labor Day holiday.

Gold prices have risen nearly 5% over the past seven sessions, supported by safe-haven demand amid fresh concerns about the Federal Reserve’s policy path and mounting sovereign debt risks in advanced economies. Spot gold touched $3,578.40 an ounce early Tuesday.

The latest surge in gold prices is being driven by mounting bets that the Federal Reserve will ease policy this month, after Chair Jerome Powell cautiously left the door open to a cut. Additional momentum came from a U.S. appeals court decision declaring most of President Donald Trump’s tariffs illegal, with permission to extend them only until mid-October. Traders are now focused on an upcoming Supreme Court ruling that will determine whether Trump has grounds to challenge the verdict.

Another driver of gold’s strength is mounting confidence that the Federal Reserve will ease policy at its upcoming meeting. Traders are also pricing in the likelihood of two 25-basis-point cuts before year-end, a scenario that would further support the appeal of the yield-free metal.

Overall, the combination of evolving trade policies, added support from dollar weakness, and ongoing supply chain challenges has reinforced the rally in gold.