Gold prices soar amid US rate cut speculation
Gold is almost at a record, hitting $3,648 per ounce this week—up over 39% in 2024 so far.
The jump comes as many expect the US Federal Reserve to cut interest rates soon, especially after new data showed more Americans filing for unemployment.
Silver's also on the rise, reaching its highest level since 2011 amid global tensions.
Why gold is seen as a safe bet
When interest rates drop, gold gets more attractive because it doesn't pay interest anyway—so there's less to lose by holding it.
That's why people see gold as a safe bet when things feel shaky in the economy or politics.
This surge has pushed prices above $3,600 globally and past ₹11,000 per gram in India.
Global banks predict further price hikes
Weaker US job numbers and sticky inflation have markets betting on a Fed rate cut at their September 17 meeting.
More money is flowing into gold funds, and China is making it easier to import and export gold.
UBS thinks prices could reach $3,900 per ounce by mid-2026 if these trends continue.