Gold prices surged above $3,530 per ounce for the first time in history, as seen on the latest XAU/USD chart. This historic rise in 2025 has been fueled by a combination of factors, including continued central bank buying, increased asset diversification, sustained demand for safe-haven assets amid ongoing geopolitical and trade tensions, and overall weakness in the U.S. dollar.
At the start of September, bullish momentum was likely reinforced by:
Expectations of a Federal Reserve rate cut. The CME FedWatch tool shows markets pricing in a nearly 92% chance of a 25-basis-point rate cut at the Fed’s upcoming meeting on September 17. Since gold does not yield interest, it typically benefits from lower rates.
Geopolitical developments in China. During a summit attended by several world leaders, China announced the formation of a SCO development bank. This news may have been seen as both a new source of geopolitical risk and a challenge to the dollar’s dominance. Former President Donald Trump labeled the summit a conspiracy against the U.S., adding to the uncertainty.
At the start of September, bullish momentum was likely reinforced by:
Expectations of a Federal Reserve rate cut. The CME FedWatch tool shows markets pricing in a nearly 92% chance of a 25-basis-point rate cut at the Fed’s upcoming meeting on September 17. Since gold does not yield interest, it typically benefits from lower rates.
Geopolitical developments in China. During a summit attended by several world leaders, China announced the formation of a SCO development bank. This news may have been seen as both a new source of geopolitical risk and a challenge to the dollar’s dominance. Former President Donald Trump labeled the summit a conspiracy against the U.S., adding to the uncertainty.
