Gold futures hit a record. Will prices for the precious metal grow further?

Gold futures hit a record high due to increased investor concerns about the independence of the US Federal Reserve, expectations of rate cuts and uncertainty around duties. In addition, the value of silver on Monday reached a 14-year high. Analysts earlier predicted that the cost of gold by the middle of 2026 could add about 13% more and reach $4000 per ounce.

Gold futures on the New York Mercantile Exchange NYMEX rose to $3557.1 per troy ounce in trading, adding more than 1% and setting a new record, The Wall Street Journal reported.

At the day trading London Bullion Market Association (LBMA) set the price of gold at $3475 per troy ounce. It exceeded the previous high of $3454, recorded on April 22, writes the Financial Times.

Shares of gold mining companies also rose on Monday. For example, quotes of Hochschild Mining jumped in London by 6.7%, Fresnillo - by 2.1%, and securities Harmony Gold in Johannesburg - by 6.4%. In the U.S. trades were not held on September 1 due to the celebration of Labor Day.

In addition, silver rose in price on Monday: it added 2.6% in the moment and reached $40.69 per ounce - the highest price since September 2011, writes Reuters. Platinum rose 3.2% to $1408.54 on Monday, while palladium climbed 1.9% to $1129.70.

Since the beginning of the year, gold has gained more than 34% in value due to demand for protective assets, WSJ noted. The metal has outperformed all other asset classes, including key stock and debt indices and major currencies, in 2025. By comparison, bitcoin, which has also hit record highs several times this year, is up about 16.4% since January.

Uncertainty in the U.S. trade policy due to duties, geopolitical tensions, investors' concerns about the independence of the U.S. Federal Reserve System, as well as expectations of a rate cut by the Federal Reserve in September, according to The Wall Street Journal.

A new round of growth of gold followed the data of consumer spending index (PCE) for July, coincided with forecasts. These figures supported expectations of a rate cut, said analysts at SP Angel, quoted by the publication. Consumer spending increased by 0.3% for the month, leaving the Fed on a trajectory of policy easing.

"The market seems to be expecting weak US jobs data this week, while silver is also strengthening amid speculation that it could be the target of Trump's next wave of duties," Peel Hunt analysts wrote in a note to clients, quoted by the FT.

Fed Chairman Jerome Powell opened the door to lower rates in a speech at the Jackson Hole Symposium on August 22, and markets now almost unanimously expect easing in September. Lower rates have traditionally made gold more attractive. Investors are waiting for the August jobs report to gauge the possible magnitude of the cut, ING analysts said.

"The silver price is rising in response to expectations of lower rates, while limited supply in the market is helping to maintain the uptrend," KCM Trade market analyst Tim Waterer told Reuters.

Separate pressure on the dollar and support for gold came from President Trump's decision to oust Lisa Cook over allegations of mortgage fraud. Cook is challenging the firing in court and it is unclear whether she retains her post. The move, according to the market, undermines confidence in the Fed's independence, boosting demand for gold as a protective asset. "The market is concerned about the stability of institutions in the US, and not just the Fed," Helen Amos, commodities analyst at BMO, told the FT. - This is naturally positive for gold in terms of demand for safe haven assets."

A U.S. federal appeals court on Friday, August 29, ruled that most of the global duties imposed by President Donald Trump were illegal because he exceeded his authority in imposing them. However, the duties remain in effect until at least mid-October - while the proceedings are ongoing. Uncertainty around trade policy weakened the dollar and pushed gold higher, WSJ writes.

Escalating geopolitical tensions have also added to gold's appeal, ANZ Research analysts emphasized. A peaceful settlement between Russia and Ukraine remains elusive, strikes continue, and Germany and France are pushing secondary sanctions against countries that support Russia, including major oil buyers China and India, WSJ wrote. The rise in gold prices this year has also been driven by concerns about the role of the U.S. dollar in the financial system and increased purchases by central banks seeking to diversify their assets and reduce their reliance on the currency, the FT notes.

In the short term, gold prices will depend on the Federal Reserve's key rate decision in September, analysts said.

"The market is waiting for Friday's U.S. jobs report, expecting it to allow the Fed to resume rate cuts from September, and this supports investment demand for gold," UBS analyst Giovanni Staunovo told Mining.com.

Bank of America estimates that gold could rise to $4,000 an ounce in the short to medium term amid Trump's threats against the Fed, CNBC writes.

Goldman Sachs predicts that gold could reach $3700 by the end of 2025 and then rise to $4000 by mid-2026, Barron's writes. The growth is due to the activity of "confident" buyers - central banks and long-term investors, for whom gold is a protective asset

UBS expects gold at $3600 by March 2026 and $3700 by June-September 2026, MarketWatch writes. The reasons for growth analysts of the bank see in macro risks in the U.S., in the pressure on the independence of the Fed, in geopolitical tensions and the trend to dedollarization of interstate payments.

This article was AI-translated and verified by a human editor