Gold surged past the $3,600 an ounce level for the first time on Monday, hitting a record high, as soft U.S. labor data reinforced expectations the U.S. Federal Reserve will cut interest rates next week.
Spot gold rose 1.3% to $3,634.25 per ounce, as of 2:26 p.m. EDT (1826 GMT). Bullion hit a record high of $3,646.29.
U.S. gold futures for December delivery settled 0.7% higher at $3,677.40.
The yellow metal could extend its momentum toward $3,700–$3,730 in the near-term, with any brief pullbacks likely seen as buying opportunities, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Friday's jobs report showed U.S. employment growth slowed sharply in August. Traders now see a 88% chance of a quarter-point rate cut at the Fed's September meeting, with around 12% chance of a larger 50-bps cut, according to the CME FedWatch tool, opens new tab.
Lower rates reduce the opportunity cost of holding non-yielding bullion.
Gold prices are up 37% so far this year, after gaining 27% in 2024, bolstered by dollar softness, strong central bank accumulation, dovish monetary settings and heightened global uncertainty.
