Gold reaches a new all-time high as Fed rate cut bets rise and markets brace for a short-term shift in sentiment.
Gold futures reached a new record high, with investors watching central bank policy, currency moves, and geopolitical uncertainty. The rally has pushed bullion prices to levels not seen before, suggesting market caution and a possible short-term shift.
Record High Driven by Fed Concerns and Dollar Weakness
Gold futures rose to $3,547.60 a troy ounce, surpassing the previous peak set in April this year. The surge comes as traders increase bets on a September rate cut by the Federal Reserve, while questions grow over the Fed’s independence.
Market analyst Ted Pillows commented on the move, noting on social media that the new high suggests instability in broader markets. He also stated that risk-on assets, particularly Ethereum, may recover strongly later in the year. His remarks echo broader investor sentiment that the current gold rally could be temporary.
Gold futures has hit a new ATH.
This means something isn't right with the markets.
The last time Gold hit a new ATH was in April, and we all knew what happened.
But this'll be a short-term thing.
I think risk-on assets will catch up in Q4, and the fastest horse will be… pic.twitter.com/DKWjIgDjPg
— Ted (@TedPillows) September 1, 2025
The U.S. Dollar Index has weakened to near a one-month low, adding further support to bullion prices. A softer dollar makes gold cheaper for foreign buyers, and this has added to the safe-haven demand. Treasury yields remain steady, but the rate-sensitive two-year yield is at its lowest since early May, reinforcing market expectations of easing policy.
Tariff Ruling and Political Events Add Uncertainty
Gold’s strength is also linked to ongoing political and trade developments. A U.S. federal appeals court ruled that many of President Donald Trump’s tariffs were unlawful, creating more uncertainty for international trade. While the duties remain in place under a temporary stay, the administration has confirmed it will appeal to the Supreme Court.
The move has stirred further concern among investors who are already cautious about global trade relations. The case also comes at a time when President Trump is seeking to remove Fed Governor Lisa Cook, a move still under legal review. These events have increased doubts about policy stability and encouraged more safe-haven buying of gold.
Meanwhile, European and U.S. commodity markets are showing mixed trends. Brent crude oil rose 1.2% to $68.31 per barrel, while copper prices fell slightly. This contrast signals that traders are shifting positions between energy, metals, and precious assets, balancing risk across sectors.
Technical Structure Suggests Short-Term Momentum
From a technical view, gold remains in a bullish formation after breaking out of a consolidation phase below $3,500. Gold tested $3,557.10 during intraday trade, with analysts suggesting the $3,550–$3,600 range as the next target. Support levels remain at $3,450 and $3,400, while the 21-day moving average offers deeper support around $3,373.
Momentum indicators point to continued strength. The Relative Strength Index is near 69, showing strong demand though not yet fully overbought. The MACD also shows widening gains, with green histogram bars confirming buying pressure in the near term.
Analysts note that upcoming U.S. labor data, including JOLTS job openings and Nonfarm Payrolls, will shape the Fed’s September policy decision. These reports may determine whether gold sustains its upward drive or faces correction as markets prepare for a potential shift back to risk assets.
