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Gold bangles are displayed at a jewellery store in Mumbai, India, March 20, 2025. Francis Mascarenhas
Gold bangles are displayed at a jewellery store in Mumbai, India, March 20, 2025. Francis Mascarenhas
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Gold hits record high as soft dollar, rate-cut bets lift appeal

September 29th, 2025 | 03:06 AM WORLD India 2

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By Brijesh Patel

Gold prices rose to an all-time high on Monday, supported by a weaker dollar and growing expectations that the Federal Reserve is likely to continue with interest rate cuts later this year.

Spot gold was up 0.8% at $3,789.39 per ounce as of 0251 GMT, after hitting a record high of $3,798.32 earlier in the session.

U.S. gold futures for December delivery rose 0.3% to $3,818.30.

The U.S. dollar index (.DXY) eased 0.2% against its rivals, making greenback-priced bullion less expensive for overseas buyers.

The U.S. Commerce Department said on Friday its Personal Consumption Expenditures Price Index (PCE) rose 0.3% in August, versus the prior 0.2% rise in July, matching the estimate of economists polled by Reuters.

"That benign inflation print in the United States has given the markets reason to believe further Fed cuts are coming in October and December," said Capital.com analyst Kyle Rodda.

"Sentiment is very bullish and we are on track to retest another record high this week. The gold market is positioned quite long at the moment and that may be pointed to as being a reason to be cautious about future upside."

Traders are currently pricing in a 90% chance of a Fed cut in October, with around a 65% probability of another in December, according to CME FedWatch Tool.

Safe-haven bullion thrives in a low interest-rate environment and in times of geopolitical and economic uncertainty.

Share markets got off to a cautious start in Asia on Monday as investors braced for a possible shutdown of the U.S. government.

Investors now await U.S. data on job openings, private payrolls, the ISM manufacturing PMI and Friday's non-farm payrolls report for further clues on the economy's health.

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.89% to 1,005.72 tonnes on Friday from 996.85 tonnes on Thursday.

Elsewhere, spot silver rose 1% to $46.47 per ounce, platinum climbed 2.6% to $1,608.90 and palladium gained 1.4% to $1,287.19.

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