• Gold prices surged past US$3,500 per ounce, reaching new record highs.
• Market sentiment driven by impending Federal Reserve interest rate cuts.
• Ongoing uncertainties surrounding US tariffs and geopolitical issues increased safe-haven demand.
• Traders are expecting a 97% chance of a Fed rate cut by mid-September.
• Central bank purchases and ETF inflows bolster gold's attractiveness as an investment.

Gold's recent rally has seen prices soaring to all-time highs, surpassing US$3,500 per ounce, driven by expectations of U.S. Federal Reserve interest rate cuts and persistent market uncertainties. The price of spot gold reached US$3,578.50, reflecting a significant increase linked to a weakened dollar and investor concerns regarding the independence of the Fed, particularly due to ongoing pressures from President Trump, according to SCMP and Reuters.

The anticipation of a 25-basis-point rate cut has increased among traders, with expectations now at approximately 97%, according to the CME Group's FedWatch tool. This outlook is supported by recent job market data suggesting a slowdown, which could bolster calls for monetary easing, reports Reuters and Channel News Asia.

Investor demand for gold has been supported by rising geopolitical tensions and ongoing central bank purchases. Data shows significant inflows into gold-backed exchange-traded funds (ETFs), with holdings reaching their highest levels since 2022. This trend highlights an increasing preference for gold as a hedge against uncertainty, according to Reuters and Reuters.

Despite a recent pullback in gold prices due to profit-taking after record highs, analysts predict that gold will continue to rise, projecting targets of US$3,600 to US$4,000 based on ongoing market conditions. Concerns about the Fed's ability to maintain its independence and the uncertainty surrounding international trade tariffs add further upward pressure to gold prices. These insights are corroborated by analysts from Reuters and Reuters.