The price of Gold (XAUUSD) surged once again at the start of trading on Wednesday (September 3, 2025), breaking its all-time high. Gold reached $3,546 per troy ounce, an increase of over $13 or 130 pips from Tuesday’s closing prices, surpassing the previous record of $3,540 set just the day before.
As of Tuesday, Gold had risen for six consecutive trading days, fueled by expectations of interest rate cuts from the Federal Reserve. According to data from the CME Group’s FedWatch tool, market participants now anticipate that the Federal Reserve may cut interest rates twice this year, specifically this month and in December.
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Initially, the market expected only a single rate cut from the Fed. However, following the release of inflation data based on the personal consumption expenditure (PCE) index from the United States, which showed stability, market analysts are now convinced the Federal Reserve may implement two rate reductions.
Moreover, recent turbulence in European financial markets has also contributed positively to Gold prices. European government bonds experienced a massive sell-off due to concerns over debt issues. As a result, the yields on 30-year bonds from France and Germany soared to their highest levels since 2011. Meanwhile, the yield on 30-year British bonds rose to levels not seen since 1998. This bond market sell-off has led to a decline in European stock indices, as well as depreciation in the euro and pound sterling. The EURUSD and GBPUSD currency pairs dropped again this morning after falling during Tuesday’s trade.
