Gold prices hit a record high above $3,700 an ounce as investors anticipate a US Federal Reserve rate cut and further monetary easing. Weak labor data and no major inflation surprises support expectations for more rate cuts. President Trump’s pressure on the Fed and economic advisor’s potential appointment add to dovish sentiment.

Gold has surged over 40% this year, outpacing major assets like the S&P 500 index and reaching an inflation-adjusted peak from 1980. Trade and geopolitical uncertainties, central bank purchases, and ETF inflows drive momentum. Goldman Sachs predicts gold could near $5,000 if just 1% of privately-held Treasuries shift to the metal.

Gold rose 0.4% to $3,693.81 an ounce, hitting a record $3,703.07 before. The Bloomberg Dollar Spot Index fell 0.4%. Silver reached a 14-year high, while platinum and palladium declined. The precious metal’s rally reflects investor confidence in further rate cuts and economic uncertainty.

Read more at Yahoo Finance: Gold Rises Above $3,700 for First Time on Fed Rate Cut Optimism