Friday, 08 August 2025, 1:40 pm

    Gold surges amid US economic uncertainty, likely Fed rate cut

    US economic uncertainty, stoked by President Donald Trumps tariff push, has bolstered gold prices close to record highs. 

    Spot gold hit USD3,418.14 per ounce on Thursday, nearing its all-time high of USD3,448.50 set in June. The price surge for the precious metal follows a 3 percent gain from a one-month low of USD3,311.80 last week, triggered by disappointing US labor market data.

    Gold is considered a safe-haven asset during times of economic uncertainty. The weak jobs report from July showed hiring fell short of expectations, and the unemployment rate edged up to 4.2 percent. Worse, employment data from previous months were revised lower, raising concerns about slower economic growth.

    The uncertainty has fueled the 30 percent rise in gold price so far this year. Investors are increasingly worried about the effects of Trump’s tariff plan on the economy and global trade, enhancing the appeal of gold to wary investors.

    Weak jobs data have fueled expectations that the Federal Reserve will cut interest rates at its September meeting. Although the Fed reduced rates by 1 percentage point in late 2024, it has held off on further cuts this year, awaiting more data on inflation and tariffs. The Fed’s dual mandate aims to balance employment growth and price stability.

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