Gold Price Hits Record High in USA as Fed Rate Cut Bets Grow

Gold prices surged to a new all-time high in the USA on September 2, 2025. This jump comes as investors expect the US Federal Reserve to cut interest rates soon.

The dollar dropped to a one-month low. This made gold more affordable for buyers outside the US. A weaker dollar often boosts gold prices.

Gold Price USA Breaks Records Amid Fed Speculation

Spot gold rose 0.5% to $3,492.26 per ounce. It reached a record high of $3,508.50 earlier in the session. US gold futures for December climbed 1.4% to $3,563.40.

According to Reuters, traders see a 90% chance the Fed will cut rates by 25 basis points on September 17. This expectation is helping gold climb.

Non-yielding gold performs better when interest rates are low. That’s because it doesn’t pay interest, so it becomes more attractive when rates fall.

The rate cut hopes come after fresh inflation data. The US PCE price index rose 0.2% in July. Year-on-year, it increased by 2.6%. Both figures matched forecasts.

Why the Gold Price USA Surge Matters Now

Gold’s rally is also fueled by political tension. President Donald Trump criticized the Fed and its Chair, Jerome Powell. He even questioned Fed spending on a building upgrade.

This has raised concerns about the Fed’s independence. Investors now fear political pressure may impact future policy decisions.

On Monday, Treasury Secretary Scott Bessent said the Fed should remain independent. But he backed Trump’s right to fire a Fed Governor over fraud claims.

These events have spooked investors. Confidence in the US dollar has dropped. That is pushing many to buy gold instead.

Other precious metals also saw moves. Platinum rose 1.6% to $1,417.16. Palladium fell 0.9% to $1,126.63. Silver slipped 1.5% to $40.61 after touching its highest level since 2011.

Gold price USA is now the focus of global investors. With the Fed meeting in weeks, all eyes are on the next move. This record rally shows how rate cuts and a weak dollar can lift safe-haven assets.

Dropping this nugget your way-

Q1: Why did the gold price in the USA hit a record high?

Gold prices rose due to expectations of a Fed rate cut and a weaker US dollar. These factors make gold more appealing to investors.

Q2: What is the current price of gold in the USA?

Spot gold hit $3,508.50 per ounce. US gold futures climbed to $3,563.40 for December delivery.

Q3: How does a weaker dollar affect gold prices?

A weak dollar makes gold cheaper for foreign buyers. This increases demand and pushes prices higher.

Q4: What is the Fed expected to do next?

Markets are pricing in a 90% chance of a 25 bps rate cut on September 17, 2025. This could impact both gold and currency markets.

Q5: Are other metals also rising?

Platinum gained, silver slipped slightly, and palladium declined. The gold rally is currently the most significant.