The price of Gold (XAUUSD) surged at the onset of the European trading session on Monday (September 8, 2025), breaking through to an unprecedented high of $3,613 per troy ounce. In comparison to the closing price on Friday, Gold rose by $27 or 270 pips.
Gold’s ascent was fueled by the release of non-farm payrolls (NFP) data from the United States last Friday. The NFP figures for August were reported at a mere 22,000 jobs. Furthermore, the NFP count for June was revised downward to -13,000 jobs, marking the first contraction since 2020 during the COVID-19 pandemic.
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For four consecutive months, NFP numbers have remained significantly below the 100,000 mark, which is typically considered a threshold for a healthy labor market. The NFP release underscores a noticeable weakening in the U.S. labor market, particularly as the unemployment rate has risen to 4.3%, the highest level since October 2021.
Market participants are increasingly optimistic that the Federal Reserve will implement more aggressive interest rate cuts this year. This is reflected in the CME Group’s FedWatch tool, which indicates a 68% probability that the Fed’s interest rates will fall within the 3.5% to 3.75% range.
Currently, the Fed’s interest rate stands at 4.25% to 4.5%, suggesting a potential decrease of 75 basis points (0.75%). Standard interest rate reductions typically occur in increments of 25 basis points, implying that market players anticipate the Fed will cut rates three times in the remainder of the year.
