Gold Hits Record $3,685 as Fed Rate Cuts Loom and Political Risks Mount

Gold surged to an all-time high of $3,685 per ounce on Monday, extending last week’s rally fueled by weak jobless data and expectations of a Federal Reserve rate cut.

Traders are already pricing in a 25-basis point reduction, boosting safe-haven demand as equities also notched new records. Bitcoin joined the broader rally but remained below its August peak of $124,457.

Analysts at Goldman Sachs warn that political interference with the Fed could propel gold even higher, potentially to $5,000. President Trump’s clash with Fed Chair Jerome Powell and recent turmoil on the board have raised concerns over central bank independence. With inflation still elevated, economists caution that weakening trust in U.S. institutions could accelerate demand for gold as a reliable store of value.

Clever Robot News Desk 16^th September 2025