Gold surges past US$3,800 an ounce to record high on US rate cut bets, geopolitical concerns.

By Jerry  Published On September 29, 2025

Gold prices broke past US$3,800 (RM16,017) an ounce for the first time on Monday to hit a record high, as expectations of more US rate cuts and concerns about a potential government shutdown fuelled safe-haven demand amid heightened geopolitical uncertainty.

Spot gold was up 1.5% to US$3,817.16 per ounce at 1227 GMT, after hitting US$3,831.19 earlier in the session.

US gold futures for December delivery were up 1% to US$3,846.90.

The US dollar index fell 0.2%, making greenback-priced bullion less expensive for overseas buyers.

“Some people describe gold as the sum of all fears, whether they are economic or political, and it’s quite clear that at the moment we have got issues on both sides,” said independent analyst Ross Norman.

US President Donald Trump will meet with the top Democratic and Republican leaders in Congress later on Monday to discuss extending government funding. Without a deal, a shutdown would begin from Wednesday.

Meanwhile, Russia launched hundreds of drones and missiles at Kyiv and other parts of Ukraine early on Sunday.

The US personal consumption expenditures price index last Friday matched expectations, reinforcing bets on further Federal Reserve (Fed) rate cuts in October and December meetings.

“With the Fed set to cut further rates over the next six months, I think there should be more upside for the yellow metal, targeting a level of US$3,900/oz,” said UBS analyst Giovanni Staunovo.

Gold, a safe-haven asset that tends to perform well in low-interest-rate environments, has climbed 45% this year, supported by strong central bank buying, the rise of gold exchange-traded funds, a weak dollar, and retail investor demand.

Elsewhere, spot silver climbed 1.4% to US$46.65 per ounce, hitting a more than 14-year high, while platinum gained 1.9% to US$1,597.18, a 12-year high, and palladium fell 0.6% to US$1,262.

Source: Theedgemalaysia


Leave A Reply

Your email address will not be published. Required fields are marked *

*