Gold hits fresh record, silver nears $42

Gold bars

Gold prices surged to an all-time high on Tuesday as the dollar weakened and expectations grew that the US Federal Reserve will cut interest rates at its policy meeting later this month.

December gold futures rose 1.42%, or $49.8, to $3,565.9 an ounce at 07:52 a.m. Mecca time.

Spot gold climbed 0.55%, or $19.16, to $3,495.23 after hitting $3,508.7 earlier in the day, surpassing its previous April record before paring gains.

December silver futures jumped 2.53%, or $1.03, to $41.76 an ounce. Spot platinum gained 0.99%, or $13.9, to $1,420.75.

The dollar index, which measures the US currency against six major peers, was steady at 97.85.

Safe-haven demand for precious metals grew as investors sought a hedge against inflation amid mounting concerns over the Fed’s independence, with US President Donald Trump pressuring Fed Chair Jerome Powell to cut rates following his dismissal of Fed Governor Lisa Cook.

Kyle Rodda, analyst at Capital.com, told Reuters that weaker economic conditions and expectations of US rate cuts are lifting precious metals, alongside growing distrust in dollar assets due to Trump’s challenge to Fed independence.

US Treasury Secretary Scott Bessent said on Monday that the Fed is independent and should remain so, but argued it had made “many mistakes.” He defended Trump’s right to dismiss Cook over alleged mortgage fraud.

Gold has gained more than 30% so far this year, making it one of the best-performing commodities.