The price of gold surged sharply on Wednesday, reaching a new record of $3,530.08 per ounce. Analysts say the rise is driven by expectations of a U.S. Federal Reserve (Fed) rate cut in September and concerns over the central bank’s independence.
By 17:30 GMT, gold stood at $3,528.80 per ounce and currently trades around $3,526.80.
Gold had already hit record levels earlier this year, surpassing $3,500 amid global trade tensions sparked by U.S. tariffs. The “safe-haven” metal has gained more than 33% so far this year.
Prices had stabilised around $3,400 as trade fears eased, but renewed expectations of a Fed rate cut for the September meeting have lifted demand once again.
The Fed is set to announce its interest rate decision later this month. Money markets assign an 88% probability of a rate cut, with two cuts expected by the end of the year. Inflation in July fell below expectations and employment growth slowed, prompting markets to anticipate a 25 basis-point reduction in September. The current policy rate stands at 4.25%-4.5%.
At the Jackson Hole symposium in mid-August, Fed Chair Jerome Powell signalled a possible rate cut, saying the central bank’s policy stance “may warrant adjustment” given shifting risks.
In addition, President Donald Trump’s move to remove Fed Governor Lisa Cook has added to gold’s appeal, raising concerns over the Fed’s independence.
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Montenegrin police, working alongside the United States' Federal Bureau of Investigation, have arrested an Iranian national accused of carrying out a series of cyberattacks that allegedly caused an estimated $3.4 billion in damage to U.S. infrastructure.
South Korea is set to dramatically expand its unmanned warfare capabilities, with plans to integrate drones across all branches of its military as tensions with North Korea continue to shape the country's defence strategy.
Azerbaijan Airlines (AZAL) has taken delivery of its first Airbus A321neo, marking another milestone in the carrier's long-term fleet modernisation programme aimed at improving efficiency, expanding capacity and enhancing the passenger experience.
Russia has called for clarification on whether U.S. President Donald Trump has changed his position on the war in Ukraine following remarks made at the recent G7 summit in Evian-les-Bains.
An earthquake of magnitude 6.9 struck Japan's northeast coast on Thursday, but no tsunami warning was issued, no injuries were immediately reported and no irregularities were found at nuclear facilities, the authorities said.
As Western Europe battles a deadly heatwave that has shattered temperature records, disrupted transport and power supplies, and forced the closure of schools and cultural landmarks, attention is turning to whether El Niño is playing a role in the extreme conditions.
The U.S. Senate rejected a resolution on Wednesday that would have directed President Donald Trump to remove U.S. forces from hostilities against Iran unless Congress formally authorised military action.
Israel's defence minister said on Wednesday Israeli troops will not withdraw from southern Lebanon, highlighting a hurdle to Iran-U.S. peace talks, as the top U.S. diplomat tours the Middle East to win over allies sceptical about a proposed deal.
Apple is facing a £3 billion lawsuit in the United Kingdom after a competition tribunal approved a major collective action over its iCloud storage service.
China has opened its market to cashew nuts from all African countries with diplomatic relations with Beijing, removing a long-standing barrier that had restricted exports from much of the world's largest cashew-producing continent.
Media leaders from across Europe gathered in Vienna this week for the annual European Publishing Congress.
Amazon founder Jeff Bezos has said artificial intelligence will ultimately lead to labour shortages rather than widespread unemployment, pushing back against growing fears that AI will replace human workers.
French department store BHV and online fast-fashion retailer Shein have ended their partnership, seven months after the launch of a permanent Shein shop in Paris triggered controversy and widespread criticism.
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