Gold briefly crossed a new intraday record of $3,508 per ounce on Tuesday before paring gains as the dollar strengthened.
The precious metal advanced as much as 0.9% in early trading but later eased to $3,476.58/oz by late morning in London.
The Bloomberg Dollar Spot Index rose 0.6%, marking its biggest increase in a month and trimming momentum in commodities.
Year-to-date, gold has appreciated by more than 30%, making it one of the best-performing major commodities. The rally has been supported by expectations that the Federal Reserve will reduce interest rates this month following cautious signals from Chair Jerome Powell. Investors are closely monitoring the US jobs report due Friday, which may reinforce the case for policy easing.
According to UBS strategist Joni Teves, demand is being sustained by portfolio reallocation into non-yielding assets.
“Our base case is that gold continues to make new highs over the coming quarters. A lower interest rate environment, softer economic data and continued elevated macro uncertainty and geopolitical risks boost gold’s role as a portfolio diversifier,” Teves said.
Silver Outperforms
Silver outpaced gold with gains of about 40% year-to-date, briefly crossing $40/oz for the first time since 2011. The metal’s dual role as a haven and industrial input, particularly in clean-energy technologies, has supported consistent demand.
The Silver Institute projects a fifth consecutive annual deficit, while exchange-traded fund (ETF) inflows rose for the seventh straight month in August. Lease rates in London remain elevated at around 2%, compared with the long-term average near zero, highlighting supply tightness.
Outlook
Both gold and silver have more than doubled since September 2022, reflecting investor demand for safe-haven assets amid global macroeconomic and geopolitical risks.
Analysts note that confirmation of a daily close above $3,500 would be a key signal for renewed bullish momentum.
Other precious metals were weaker, with platinum and palladium retreating alongside silver’s late-session decline as the dollar extended gains.