Gold price surpasses 3,580 USD/oz, highest in history, as Fed moves closer to September interest rate cut decision. USD weakens, oil falls, Russia & Ukraine tensions.
Gold sets historic record of nearly 3,580 USD/oz
On September 4, spot gold prices skyrocketed 3,580 USD/oz, an all-time high, before adjusting slightly to $3,550/oz.
The rally was driven by several factors:
- Probability of Fed rate cut in September up to 96,6%.
- The USD weakened, the DXY index retreated to 98.14 points.
- US bond yields fell sharply, stimulating demand for havens.
- Concerns over President Trump's increased intervention in the Fed.
Experts say that gold has become "last refuge" of investors in the context of economic and geopolitical instability.
News 9/4: Gold price hits new peak as Fed moves closer to lowering interest rates
Fed faces pressure to cut interest rates
Many Fed officials admit that monetary policy is now in a "dilemma": Inflation remains high, while the labor market and consumer spending are weakening. The recent jobs report showed a slowdown, further strengthening the case that the Fed will be forced to cut interest rates to support growth and avoid a deeper recession.
Trump warns of risks in tariff policy
US President Donald Trump warned that if the court overturns the global tariff policy, US trade deals signed with the EU, Japan and South Korea could be canceled.
He asserted that tariffs are "economic weapon" help the US gain an advantage in negotiations and see it as a strategic tool to maintain prosperity.
Russia – Ukraine: Diplomatic tensions escalate
In Europe, President Vladimir Putin said he was ready to welcome Ukrainian President Volodymyr Zelensky in Moscow if Kiev was “well prepared”.
However, Ukraine quickly dismissed the possibility of holding the meeting, saying the conditions were not yet ripe. In parallel, Kiev is said to have deployed a type of new secret weapon on the battlefield, causing the risk of conflict to escalate.
Oil falls sharply, USD weakens
- WTI Oil down 2.47% to 63.97 USD/barrel.
- Brent Oil down 2,23% to 67.6 USD/barrel.
- USD Index back to 98.14 points.
- 5 year bond yield fell to 3,68% – lowest since April 2025.
This development shows that money is shifting away from the USD and oil, towards gold and other safe-haven assets.
Gold prices have hit a new high amid the Fed's nearing a rate cut, a weakening dollar and heightened geopolitical risks. Global financial markets have entered a sensitive period where every piece of US economic data could sway policy expectations.
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FAQ – Frequently Asked Questions
1. Why did gold price hit a new peak of nearly 3,580 USD/oz?
Due to expectations of a Fed rate cut, the USD weakened, bond yields fell and demand for safe havens increased sharply.
2. How likely is the Fed to cut interest rates in September?
According to CME FedWatch, the probability of a 25 basis point Fed cut is now above 96%, almost certain.
3. How does Trump's tariff policy affect the market?
If the policy is vetoed, trade deals with the EU, Japan and South Korea could collapse, adding to global instability.
4. Is there a possibility of peace talks between Russia and Ukraine soon?
Low probability. Putin is ready to welcome, but Ukraine rejects, saying the conditions are not suitable.
5. How are oil and the USD doing?
WTI oil fell 2.47% to 63.97 USD/barrel, USD Index fell to 98.14 points, US bond yields fell to a 5-month low.
