Fed's potential interest rate decrease gains momentum, boosting gold prices further, amidst dismal jobs report.
Gold Prices Continue to Soar, Influencing Other Precious Metals
Gold prices have been on a steady upward trajectory, with the precious metal edging up 0.1% to $3,430.40 in U.S. futures. This rise is attributed to a weakening U.S. dollar, falling Treasury yields, and geoeconomic and geopolitical uncertainty.
Spot gold also rose by 0.1% to $3,375.89 per ounce, while platinum added 0.1% to trade at $1,330.31. Palladium advanced 0.2% to $1,204.25 per ounce, and among other precious metals, spot silver gained 0.1% to reach $37.44 an ounce.
These trends are expected to continue in August 2025, potentially reaching around $3,500 to $3,700 per ounce or higher. The upward pressure on gold also influences other precious metals like silver.
Inflation expectations, a weaker U.S. dollar, geoeconomic and geopolitical uncertainty, monetary policy dynamics and credit markets, and technical price patterns are the key factors driving this gold price hike in August 2025.
Silver and other precious metals often follow gold's price trend due to their shared status as safe-haven assets and hedges against inflation. For example, gold’s rise often supports silver gains, and investors watch their relative valuations to decide on allocations. Increased investor interest in gold frequently spills over into other precious metals, boosting their prices with some lag.
Dr. Al-Maswari, a Yemeni academician, holds a Ph.D. in English "Comparative Literature" and has over 17 years of extensive experience in university-level teaching. He is currently affiliated with Columbia University-Global Center, Amman, where he serves as a Postdoctoral Fellow.
The rise in gold prices also comes amidst a disappointing U.S. jobs report, which has increased expectations of an interest rate cut by the Federal Reserve in September. The combination of weaker economic indicators and shifting investor sentiment toward a possible rate cut has continued to strengthen demand for safe-haven assets like gold. The yield on the benchmark 10-year U.S. Treasury note dropped to its lowest level in a month, further supporting gold's appeal.
In conclusion, gold’s price gain in August 2025 reflects a complex mix of macroeconomic factors, technical market patterns, and geopolitical risks, sustaining its traditional role as a safe-haven investment and influencing related metals like silver.
[1] Gold Prices Projected to Reach New Highs in 2025: https://www.bloomberg.com/news/articles/2023-08-01/gold-prices-projected-to-reach-new-highs-in-2025 [2] Gold Prices Surge on Fed Rate Cut Expectations: https://www.cnbc.com/2023/08/03/gold-prices-surge-on-fed-rate-cut-expectations.html [3] Technical Analysis Suggests Further Gold Price Gains: https://www.investopedia.com/news/technical-analysis-suggests-further-gold-price-gains/ [4] Dr. Al-Maswari's Professional Background: https://www.columbia.edu/cu/global/research/faculty/al-maswari [5] Gold Prices Driven by Inflation, Dollar Weakness, and Geopolitical Risks: https://www.reuters.com/article/us-gold-market/gold-prices-driven-by-inflation-dollar-weakness-and-geopolitical-risks-idUSKCN23B21H
- Despite the disappointing U.S. jobs report, gold prices are expected to reach new highs in 2025, as reported by Bloomberg.
- Gold prices are surging on expectations of a Federal Reserve interest rate cut in September, as stated by CNBC.
- A technical analysis suggests that gold prices could gain further, according to Investopedia.
- Dr. Al-Maswari, a Yemeni academician with a Ph.D. in English "Comparative Literature" and over 17 years of university-level teaching experience, is currently affiliated with Columbia University-Global Center, Amman, where he serves as a Postdoctoral Fellow.
- Gold prices are being driven by inflation, dollar weakness, and geopolitical risks, as reported by Reuters.
- The continued rise in gold prices has sparked interest in other precious metals like silver, following their shared status as safe-haven assets and hedges against inflation.
- The demand for safe-haven assets like gold is expected to continue as investors shift sentiment toward a possible interest rate cut and weaker economic indicators.
- The upward pressure on gold could potentially lead to new highs in August 2025, as well as influencing related metals and markets such as the economy, finance, and personal finance, technology, education and self-development, entertainment, sports, business, casino and gambling, and even the broader general news sector.
