Gold smashes $3,500 record as rate-cut bets, policy turmoil fuel haven rush

Group 1: Gold Market Dynamics - Gold prices surged to a record above $3,500 an ounce, driven by expectations of Federal Reserve interest rate cuts [1][4] - Spot gold briefly exceeded $3,508 in New York trading, marking a significant increase of approximately one-third in 2025, outperforming most major assets [1][16] - UBS strategist Joni Teves indicated that the rise in gold prices is linked to increased allocations by investors anticipating Fed rate cuts [2] Group 2: Market Influences - Fed Chair Jerome Powell's remarks at Jackson Hole hinted at potential rate cuts, reinforcing market expectations [3] - A cooler labor market has further solidified the case for easier monetary policy, with the upcoming jobs report expected to provide clearer direction [3] - Wall Street experienced a decline in stock prices, with the Dow Jones Industrial Average dropping 441 points, contributing to increased demand for safe-haven assets like gold [7] Group 3: Silver Market Performance - Silver prices also rose, surpassing $40 an ounce for the first time since 2011, with nearly 40% gains year-to-date [3][6] - The demand for silver is bolstered by its dual role as a safe-haven asset and its industrial applications, particularly in clean energy [6] Group 4: Investor Behavior - ETF buying has increased for seven consecutive months, leading to a reduction in available inventories in London and elevated lease rates [6] - Seasonal trends indicate September is historically a weak month for equities, with the S&P 500 averaging a 4.2% decline over the past five years, prompting a shift towards gold [16]