Gold makes an all-time high
Gold surged on Tuesday, reaching new record highs as expectations for US interest-rate cuts bolstered prices. Analysts foresee long-term gains for the precious metal, driven by the Federal Reserve's preparations to cut rates, believing inflation is under control. This anticipation has weakened the dollar and Treasury yields, enhancing gold's appeal. Gold rose by $46, or 1.9%, to close at $2,468.70 an ounce, surpassing previous records.
The SPDR Gold Shares ETF also reached a new all-time intraday high on Tuesday, reflecting gold's strength. Holdings in gold ETFs, which peaked in October 2020, have been declining but now appear to be rebounding. This resurgence is driven by new demand from financial advisers and institutions. Political uncertainty following the assassination attempt on former President Donald Trump, weak economic data, and falling inflation have all contributed to gold's rise.
Despite potential short-term setbacks if the Fed delays rate cuts, the medium to long-term outlook remains positive. Key factors include anticipated interest-rate cuts, geopolitical instability, China's struggling economy, and central bank demand for gold. Overall, gold's appeal as a low-yield asset is expected to remain strong, supported by both economic conditions and investor sentiment. Rising gold demand and limited supply typically lead to higher prices, reinforcing the positive outlook for the precious metal.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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