Gold Hits $3,500 as Fed Signals Possible Rate Cuts
Precious metals soar as the Fed’s next move, political turbulence, and industrial demand reshape global markets.

Gold surged past $3,500 an ounce, setting a fresh record as investors piled into safe-haven assets on bets that the Federal Reserve is preparing to cut interest rates. The metal briefly reached $3,508 in early Tuesday trading, eclipsing its April peak, before paring gains as the dollar regained strength. Even so, bullion remains up more than 30 percent this year, firmly cementing its status as one of the strongest-performing commodities in 2025.
Federal Reserve at the Center of the Rally
The Federal Reserve has once again become the key driver of global markets. Investors are wagering that the central bank will soon lower borrowing costs, especially after Fed Chair Jerome Powell hinted that a reduction was on the table. A weaker US jobs market, expected to be confirmed in the upcoming employment report, has strengthened the case for cuts. For gold, which offers no yield, lower interest rates immediately boost its relative appeal.
Beyond monetary policy, investors are also bracing for political turbulence. President Donald Trump’s escalating clashes with the Fed, including efforts to unseat Governor Lisa Cook, have raised concerns over central bank independence. Meanwhile, a federal appeals court ruling that Trump’s global tariffs were illegally imposed adds fresh uncertainty for American trade and economic growth. These flashpoints have accelerated the rush into gold as a hedge against instability.
