Gold was charging near a record high Wednesday, trading around $3,650 an ounce after US wholesale prices unexpectedly fell and investors piled into bets the Federal Reserve will slash interest rates next week.
The precious metal brushed an all-time peak of $3,674 earlier this week and has already soared 40% in 2025, trouncing stocks and other major assets.
Wednesday’s surge came after the Bureau of Labor Statistics reported that the producer price index dropped 0.1% in August, defying forecasts for a rise.
The surprise slide and recent weak jobs reports give the Fed cover to ease policy at its Sept. 17 meeting, experts predicted.
Traders now see a near-100% chance of a quarter-point cut and a growing shot of a half-point move, CME FedWatch data shows.
“Gold’s climb past $3,600 is being driven by this month’s Fed rate-cut expectations and heightened market volatility,” Leanna Haakons, president and founder of Black Hawk Financial, told The Post.
“Central bank buying, a weaker dollar, and recession fears are adding even more fuel to the rally. When markets feel unstable and uncertainty rises, many investors turn to gold as one of the safest places to put their money.”
Gold thrives on looser money because lower yields sink the dollar and cut the cost of holding non-yielding bullion.
The US dollar index has already plunged 10–11% this year, its steepest collapse in decades.
Safe-haven demand is adding fuel, as investors hedge against Middle East flashpoints, European unrest and heavy central-bank buying led by China and India.
Both nations have boosted reserves while retail buyers snap up jewelry and coins.
Investment flows are surging.
The world’s biggest gold ETF, SPDR Gold Shares, pulled in $5.5 billion in August alone, sending global ETF holdings to a three-year high.
Forecasts are also racing higher.
ANZ now sees gold at $3,800 by year-end and as much as $4,000 by mid-2026.
JPMorgan and Goldman Sachs predict two or three Fed cuts this year and deeper easing through 2026.
Still, some warn of an overbought market, raising the risk of a pullback before prices climb again.
On the supply side, analysts say 2025 may mark peak global output at roughly 3,250 tons, with aging mines in China and Russia set to drag production lower from next year.
Meanwhile, silver has surged 45% this year to $40.57 an ounce, its highest in 14 years, underscoring a broader stampede into precious metals.
All eyes now turn to Thursday’s consumer price index report, which could confirm whether inflation has cooled enough to cement the Fed’s pivot.
Until then, gold remains the market’s hottest trade — an asset smashing records as investors bet on easier money, weaker currencies and a world on edge.
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