Gold has surged to a new all-time high of US$3,508 per ounce, while silver soared to US$40.85 per ounce—its highest level since September 2011—as investors continued rotating into hard assets amid global uncertainty and expectations of looser monetary policy.
The latest leg of the rally began mid-morning yesterday, coinciding with a social media post by United States President Donald Trump asserting that prices in the US are “WAY DOWN” and that inflation is virtually non-existent.
That claim stands in stark contrast to recent data showing sticky inflation and robust growth, with the Atlanta Federal Reserve’s GDPNow model currently forecasting 3.5% gross domestic product (GDP) growth for the third quarter of 2025.
According to IG Markets analyst Tony Sycamore, the precious metals market is now awaiting Friday’s US non-farm payrolls report and next week’s labour market revisions from the Bureau of Labor Statistics. He said the direction of gold prices beyond US$3,500 would hinge on whether these data points came in soft, in which case “a move towards US$3,750 is not out of the question” as the rush into safe-haven assets accelerates.
Sycamore also noted that investors are increasingly pricing in deeper and earlier interest rate cuts as Trump continues reshaping the Federal Reserve Board with dovish appointees.